Sir,
Kindly clarify registration liability under GST for direct selling distributors.
The exemption limit of 20/10 lakhs applicable not?
HSN code for the service provided.
For your information, s/he do not sell any goods of the company but get facilitation fees on sells made by persons introduced by him to multilayer marketing companies like Modicare, Amway, Tupperware etc.
Thanks in advance.
GST Registration Not Required for MLM Facilitation Fees; Exemption Limit Applies, Section 24(vii) CGST Act Not Applicable A query was raised regarding the Goods and Services Tax (GST) registration liability for direct selling distributors who earn facilitation fees, not from selling goods, but from commissions on sales made by others in multi-level marketing companies. The exemption limit of 20/10 lakhs is applicable, and the service is classified under HSN code 998599 for other business support services. Responses clarified that facilitation fees are akin to commissions and are subject to GST provisions. Further clarification was sought on whether section 24(vii) of the CGST Act applies, with the conclusion that it does not, based on the HSN code. (AI Summary)
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