Go AD-FREE with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Commission under gst

133 views 4 replies

prince

Accounts consultant

34 Points Joined February 2016

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?

Replies (4)

Subhkaran Surana

343 Points Joined 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

CA Sunil Kumar

Chartered Accountant

4524 Points Joined July 2014

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).