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Commission under gst

prince (Accounts consultant) (34 Points)

29 May 2018

Dear sir,

I have a sole proprietorship business with GST and I have earned income from advertisement services and commission. I receive the commission from clients with the deduction of TDS @ 5%. We have received the GST invoice from the supplier (Service provider) and provide GST invoice to the client (Third party) with including the amount of commission. Is it possible or not?

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4 Replies

Subhkaran Surana (343 Points)
Replied 29 May 2018

you are acting as an agent since you are facilating in the supply of service and as per section 24(viii) , mandatory registeration is required for agent and thus the transaction is liable to GST as per section 9 of CGST

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CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 29 May 2018

There is nothing wrong in these transactions. it is a normal business transaction circle. You can claim ITC on inward service ( on the basis of invoice issued by supplier).