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

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.