Commission paid to agents

This query is : Resolved

mona (Querist)
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15 August 2018 We have to pay commission to agents both registered as well as non registered. We are registered dealers. GST applicable according to me is 18 %. Kindly let me know as to who is liable to pay gst in such cases.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 August 2018 Agent is liable to pay GST in such a case.

mona

mona (Querist)
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16 August 2018 Agent in case both he is registered as well as not registered?? Pl clarify

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Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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16 August 2018 For services received from unregistered service providers the liability to pay GST under reverse charge as per Section 9(4) has been deferred. Hence no liability as of now to pay GST on reverse charge for services received from unregistered service providers. Further as per Section 24 of CGST Act commission agent require mandatory registration, hence the liability even ordinarily lie with the agents to charge and pay GST.