17 December 2018
i have associated with "mahindra finance" as an agent and provides services for financing commercial vehicle. i have earned a commission of Rs.350000. the company saying me to register under GST and levying 18% gst rate or 5% rate. the company will pay the net amount after deducting GST. the company said me that there are two rates available.one is 5% under which no credit is available and the other one is 18% under which i can claim credit. i don't know what the company actually wants to say.and also tell me the GST deducted by company is refundable or not. is this input tax or output tax for me? what is the SAC code for me for registration. thanks
17 December 2018
Agents need to take compulsory registration irrespective of the turnover. Once you get registered under GST, you need to raise a tax invoice to your principal with applicable GST rate (18%). You can take input credit if you have any inward supplies that is used to effect outward taxable supplies.
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