Commission on sale

[Suman Gl]

Hello sir I'm distributor I purchase topup currency from United India marketing Now he is asking to rise invoice on commission on sales and to show in gstr3b and in gstr1 is it correct sir. And I gave that commission to retailer but they are unregistered in gst now how should I take the commission given to retailer in gst... Please give a suggestion what to do

[DR.MARIAPPAN GOVINDARAJAN]

If your total commission exceeds ₹ 20 lakhs you have to register with GST; otherwise not required.

Reverse charge mechanism is postponed to 30.09.2019. As such don't bother about commission paid to retailers even though you are a registered person.

[KASTURI SETHI]

I support the views of Sh.Govindarajan, Sir.

[Ganeshan Kalyani]

I could not get your query clear.

AI Summary

GST on commission: registration depends on turnover threshold and reverse charge on retailer payments is deferred. Commission paid or received in distribution arrangements is subject to GST rules and may require registration when aggregate taxable turnover exceeds the prescribed threshold. Reverse charge for commission payments to unregistered retailers is deferred, so payers who are registered persons need not treat such payments as subject to reverse charge during the deferment; registered principals or distributors should reflect commission invoices in their returns per invoicing and reporting requirements.