Selling commission GST liability

[Muthukumar Muthunarasimhan]

Dear Experts,

As per the CGST ActSec 9(3) selling Commission paid to a person in the taxable territory who has falls below the threshold limit is to be covered under RCM ? Else exempt upto Sep 2019 as per Notification.Pls advice.

[Ganeshan Kalyani]

RCM is not applicable w.e.f.13.10.2017 on inward supply of goods or services or both from a person not registered under GST. Now , that provision u/a 9(4) is rescinded. Hence, if the selling agent is not registered under GST then RCM is not applicable to you. Also, the said service is not falling under 9(3). Further, if that agent is registered then he will charge GST on the invoice.

[raghu raghu]

commissions also taxable,

[Ganeshan Kalyani]

If the commission of the agent crosses the threshold limit then he has to register under GST. Commission is a taxable service.

[YAGAY andSUN]

Our views are also at par with our Experts.

[KASTURI SETHI]

Commission agent is covered under Section 24(vii) of CGST Act for the purpose of compulsory registration.

[Muthukumar Muthunarasimhan]

Dear Experts,

Thanks for all those who responded to my query regarding the applicability of GST on selling commission under RCM. I understood that irrespective of the Turnover a person who has received a selling commission then he has to compulsorily register under the Act and collect the GST and pay.

AI Summary

GST on Selling Commissions: RCM Not Applicable for Unregistered Suppliers Post-October 2017; Compulsory Registration Under Section 24(vii) A discussion on the Goods and Services Tax (GST) liability for selling commissions under the Central Goods and Services Tax (CGST) Act was held. The main query was whether selling commissions paid to individuals below the threshold limit are subject to Reverse Charge Mechanism (RCM). Responses clarified that RCM is not applicable for unregistered suppliers post-October 2017, and if the agent's commission exceeds the threshold, they must register for GST. It was noted that commission agents are subject to compulsory registration under Section 24(vii) of the CGST Act, and they must collect and remit GST on commissions received.