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Broker

05 April 2018

Dear sir please guide, if total brokerage receivable in a financial year is less than 20 lakh, then is it compulsory to register under gst by broker.

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6 Replies

CA SUDHINDRA D S (Practising CA) (761 Points)
Replied 05 April 2018

Limit of 20lacs for a broker applies to the brokerage amount. Accordingly, if brokerage amount is less than 20lacs then GST registration is not required

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 05 April 2018

As per section 24 CGST act ( compulsory registration)

vii] persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

AND

As per definition of agent
Section 2(5) of The Central Goods and Services Tax Act, 2017 provides for definition of agent as follows: “agents” means a person including a factor, broker, commission agent, arhatia, del credere agent, or an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another.

So BROKER has to registered irrespective of turnover

CA SUDHINDRA D S (Practising CA) (761 Points)
Replied 09 April 2018

As per my view, registration irrespective of turnover applies only when the broker carries on business of supply of goods or services on behalf of another. Else brokerage amount has to cross Rs.20lacs for registration.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 11 April 2018

Mr. Sudhindra ji plz read the defination carefully
it commission agent, feeders agent , mercantile agent OR who carries on the business on supply of goods or service on behalf another

CA SUDHINDRA D S (Practising CA) (761 Points)
Replied 11 April 2018

Mr. Pankaj Sir, does the registration will be mandatory if a person is just earning commission if he finds a customer to the seller. Please educate me on this

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CA SUDHINDRA D S (Practising CA) (761 Points)
Replied 05 April 2018

For a broker, the limit of 20lakhs is applicable to the brokerage amount. Hence, if brokerage amount is less than 20 Lacs then GST registration not mandatory