1)Our A Company (Pvt Ltd) received commission income against Finance to others. Our Company not engage in any business no Sales Transactions. Our Company received commission from individual against finance to other in same State. Our work as intermediary. In this case the GST Registration require to us or not.
2)Our B Company (Pvt Ltd) received Foreign Commission income against Sales of Goods in FY 2017-18. Our work as intermediary. In this case the GST Registration require to us or not.
Above both the companies turnover is 1.50 to 2 Lacs only in FY 2017-18. If GST Registration required than what is the procedure to Registration with GST. Do we need to pay GST on above transaction. What is Rate of GST on commission Income.if Registration required.
03 February 2018
GST registration is required for sale of goods as well as for rendering of services. The commission earned by you will attract GST. However, since your turnover is less than 20 lacs, GST registration is not required in your case.
05 February 2018
In terms of provisions of Section 2(13) of the IGST Act, 2017, “Intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account. Registration for an intermediary:
Sec 24 (vii) states , persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise, have to mandatory take registration irrespective of their amount of turnover.
As per the above provision, threshold limit of Rs.20 lakh (Rs.10 lakh in specific states) is not applicable for intermediaries.
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