Applicability of Notification No.15/2018 dated 26-07-2018 to Brokers

[Prashanth G]

The CGST (Rate) Notification No.15/2018 dated 26-07-2018 applies to Individual Direct Sales Agents (DSA) other than a body corporate, partnership or LLP. Accordingly, service recipients- Banks & NBFCs has to pay GST on Reverse Charge Mechanism.

Need expert opinion whether this notification is applicable even to the brokers. Case Laws, if any, in this connection will be appreciated 

AI Summary

Reverse charge mechanism for individual DSA services applies only when brokerage functions match DSA activity for banks or NBFCs.
Notification No. 15/2018-Central Tax (Rate) applies only to services supplied by an individual Direct Selling Agent to a banking company or NBFC, with tax payable under reverse charge mechanism. A broker is not expressly covered; the decisive test is whether the broker in substance performs the functions of an individual DSA, such as sourcing customers or facilitating financial products for banks or NBFCs. If not, the notification does not apply and GST is payable under the forward charge mechanism.