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 Now , that provision u/a 9(4) is rescinded.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

Selling commission GST: commission agents must register and charge GST; reverse charge not applicable for unregistered suppliers. Selling commission is a taxable service; reverse charge does not apply to supplies from unregistered persons after rescission of the prior provision. Commission agents are subject to compulsory registration and, if registered, must invoice, collect and remit GST on commissions, with registration required when turnover thresholds are exceeded.