GST ON COMMISSION INCOME

[Deepak Gupta]

I AM REGISTERED PERSON UNDER GST AND MY ANNUAL TURNOVER IS MORE THAN 20 LAKH.

IN MAR 2018 I HAVE RECEIVED COMMISSION ON SALE OF GOODS OF OTHER REGISTERED PERSON.

IS GST APPLICABLE ON COMMISSION INCOME ?

IS IT MANDATORY FOR ME TO ISSUE INVOICE ?

IS I AM LIABLE TO PAY INTEREST/PENALTY ON THAT COMMISSION IN PRESENT GST RETURN ?

AI Summary

GST on commission income: taxable supply; invoice must be issued and interest/penalty applies for delays.
Commission earned for effecting sale of goods for another registered person is taxable under GST and must be treated as taxable consideration. The registered recipient must issue a tax invoice for such commission, include it in GST returns and pay the tax within prescribed timelines. Interest is payable on delayed tax payments and penalties or late fees may apply for delayed or non-submission of returns.