GST on Mutual Fund Agent

[SUBRATA RAY]

What will tax incidence of mutual fund agent after crossing threshold limit whether tax will be charged by forward mechanism or tax will be levied by RCM by recipient company

AI Summary

Mutual Fund Agents Must Pay GST via Forward Charge Once Threshold Exceeded, Not Under Reverse Charge A discussion on the Goods and Services Tax (GST) implications for mutual fund agents highlights that once the threshold limit is crossed, the agent must pay GST through the forward charge mechanism. Three contributors agree that services by mutual fund agents are not subject to the reverse charge mechanism. They classify these services under HSN Code 997152, which includes brokerage and related services. Thus, the mutual fund agent is responsible for registration and tax payment once the threshold is exceeded.