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Gst on commission

mona (Direct Tax) (136 Points)

12 October 2018

We have sold certain products through agents. We have to pay commission to them . Will we add gst to the commission amount payable to them. Pl clarify

Thanks

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5 Replies

ARVINDER SINGH (28 Points)
Replied 12 October 2018

if the agents are registered under GST they will issue their commission invoices with GST , and you can claim ITC for the same. if unregistered agents ,then they will issue invoices without charging any GST. in any case you cannot add GST and make payment.

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mona (Direct Tax) (136 Points)
Replied 12 October 2018

is there any basic exemption till which i am not required to charge gst in case i am paying commission????

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 12 October 2018

No such @ mona you need to deduct TDS only as per IT Act, 1961.

Broker need to raise the invoice for commission

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ARVINDER SINGH (28 Points)
Replied 13 October 2018

according to the latest notification the agent's turnover is considered to be the amount involved in the sale of goods.. hence he is liable to take GST registration and charge GST (if total sales value exceeds 20 lakhs for all his commission transactions in a year for all the customers/clients).