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

[Nandan Khambete]

No impact in GST till 30.9.2019 as RCM for 9(4) CGST is deferred till 30.09.2019.

[DR.MARIAPPAN GOVINDARAJAN]

If your threshold limit is increased then definitely it will have an impact.

[mohan sehgal]

What is the scene when the commission receiver has aggregate commission received for the full financial year is 8 lakhs and he is also doing retail business of Trading where his annual turnover is more than ₹ 20 Lakhs and he is registered under GST.

Whether he has to raise Bill for commission received ₹ 8 lakhs and charge 18 % GST.....as i understand the turnover shall be clubbed for both the services rendered and trading of goods;which are both in his legal name.

[mohan sehgal]

POLITE REMINDER TO RESPOND<<DEAR EXPERTS.

THANKS.

[DR.MARIAPPAN GOVINDARAJAN]

The turnover should be clubbed. Invoice is to be issued for commission claiming GST

AI Summary

Reverse charge mechanism for commission deferred, but commission counts toward registration threshold and may trigger GST liability.
Commission paid to an unregistered recipient may not attract immediate GST liability for the payer while a deferral of the Reverse Charge Mechanism is in effect, but that deferral is temporary. The recipient must include commission receipts in aggregate turnover to determine the registration threshold; if aggregation causes the recipient to exceed the threshold, the recipient must register and account for GST on commission services, with interstate or intra state character affecting the applicable treatment.