GST on Commission Earned

[Guest]

Hello Sir,

I want to know about the GST applicable on Commission earned by an Independent Representative of a Direct selling co., as and when the sale happen at one point the above all the people get commision for that one sale only. So what is the criteria of GST on that sale for each level. That means from where and how much will be deducted as GST.

Secondly from where i will get the information on rules of GST applicability on Commission.

[KASTURI SETHI]

First of all registration under GST Act is compulsory without any threshold exemption

SECTION 24. Compulsory registration in certain cases. - Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act, -

(vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

AI Summary

Compulsory registration for agents requires GST registration for commission earners in direct selling, with no threshold exemption. Commission earners who make taxable supplies on behalf of others qualify for compulsory registration as agents under GST and are not entitled to the threshold exemption; they must therefore obtain GST registration and comply with obligations applicable to registered persons.