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Commission Paid

Nishant shah (AUDIT ASSISTANT) (302 Points)

19 April 2018

I have proprietary business where I have 3 commission agent individuals who help me to increase our business to whom I paid 1, 3 & 4 Lac respectively.They all are exempted from GST. Now question is that whether they should issue me bill of supply or can I issue debit note to them instead??

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13 Replies

Jatin (Accountant) (3479 Points)
Replied 19 April 2018

agent issue bill

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Nishant shah (AUDIT ASSISTANT) (302 Points)
Replied 19 April 2018

bill of supply?

(Guest)

Yes, bill of supply.

Nishant shah (AUDIT ASSISTANT) (302 Points)
Replied 19 April 2018

ok thanks

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 19 April 2018

U will issue a self invoice & the payment vouher as per section 31cgst act

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(Guest)

Self invoice and payment voucher are required only when you are liable to pay taxes on purchases from unregistered dealers. Since, it is exempt for the time being. Hence, these are not required.

Nishant shah (AUDIT ASSISTANT) (302 Points)
Replied 20 April 2018

ok thanks everyone for better explanation

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 20 April 2018

l
@ Manish ji

There is nothing mention in Act that self invoice and payment voucher is only can be issued when the recipient is liable for to pay tax, its when u purchase from unregistered.

Moreover Section 9(4) is deferred not Format for Self invocie or payment voucher (section 31 CGST)

(Guest)

In section 31(3)(f) & (g). It says "who is liable to pay tax under 9(3) & (4)". Presently, it is exempt. No tax is payable. So, IMO not required. What's your view?

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 20 April 2018

NO ITS READ OUT

(G) A REGISTERED PERSON WHO IS LIABLE TO PAY TAX UNDER SUB-SECTION (4) OF SECTION 9 SHALL ISSUE A INVOICE IN RESPECT OF GOODS & SERVICES FROM THE SUPPLIER WHO IS UNREGISTERED

IF THE SECTION 9(4) IS DEFFERED THAT DOES MEAN THE INVOICE WILL BE NOT MADE BY REGISTERED TAXPAYER

OK FINE FOR INSTANCE I AGGREE TO U.,,... BUT HAVE U FILE GSTR4 , IN THIS PURCHASE FROM UNREGISTERED DEALER IS GIVEN IN SHEET 4C, WHERE IT DOES NOT ACCEPT THE SAME BILL NO. FROM TWO DIFFERENT SUPPLIER (UNREGISTERED), WHY... BEACUSE THE PORTAL ALSO ASSUME THAT THE SELF INVOCIE IS MADE BY RECEIPIENT FOR THE SUCH PURCHASES & CANNOT BE DUPLICATE

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(Guest)

Do composition dealers need to disclose exempt supplies like normal dealer? Because in GSTR 2, the table "Supplies received from composition taxable person and other exempt/Nil rated/Non-GST supplies received" is for disclosing exempt purchases. This table is missing from GSTR 4.

In your views, invoice is required. But for exempt supplies, bill of supply is made.

In section 9, "central tax...shall be paid by...". And as per notifications, levy is exempted, so no tax is there.

And in section 31, there is "who is liable to pay... issue an invoice". Its only Invoice, not including Bill of supply, and liable to pay. The person will be liable if there is tax, as you can see it is exempted by notification.

These are my reasoning, if you are satisfied.

Let's have further discussion to reach a conclusion. Others may also join. After all we'll all learn.

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