Will we be liable to pay GST under Reverse Charge on Commission paid to unregistered Entity/Person?
If yes, shall we be allowed to take Input Credit of such amount?
Moreover, will GST be levied if we receive commission from outside State(West Bengal), even though we are not required to get registration as we fall under ₹20,00,000 criteria.?
Dear Sweta,
In response to your first query about credit eligibility of GST paid under.have revrse charge.
Read Section 16
Yes you will be eligible to take credit of such GST paid as you are registered person and have taken supply(services) for furtherence of your business.
In second question you asked for registration,
Read Section 22 person liable to registration
Whose aggreegate turnover in a finacial year exceeds Rs. 20 Lakh rupees. Here your turnover is less than Rs. 20 lakh so registration is not mandatory but the the person who is paying commission to you will be liabe to pay GST under RCM if registered.
CAclubindia
