COMMISSION PAYMENT

[nandankumar roy]

WE ARE PAYING COMMISSION TO PARTY AS A SALES COMMISSION : PARTY IS NOT REGISTERED TO GST AS THEIR ALL TRANSACTION WITH IN TURNOVER LIMIT 20 LACS CITERIA

1ST PARTY INTRA STATE AND PAYING 7 LACS

2ND PARTY INTERSTATE AND PAYING 9 LACS

WHAT WILL BE IMPACT ON TRANSACTION IN GST REGIME AND WHETHER ANY LIABILITY ARISE IN FUTURE WITH US . PL HELP REGARDING THIS MATTER WHO HAVE CLEAR IDEA AND ADVANCE THANKS.

N K ROY

AI Summary

GST Implications on Sales Commissions for Unregistered Parties Under 20 Lakhs Turnover; Deferred RCM Until Sept 30, 2019 A discussion on a forum addresses the issue of paying sales commissions to parties not registered under GST due to their transactions being within the turnover limit of 20 lakhs. One party is intra-state, receiving 7 lakhs, and another is inter-state, receiving 9 lakhs. The concern is about the GST impact and future liabilities. Responses indicate no GST impact until September 30, 2019, due to deferred reverse charge mechanism (RCM). If the threshold limit increases, there will be an impact. For commission receivers with a total turnover exceeding 20 lakhs, GST should be charged, and turnover from all activities should be combined.