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gst on commission / Brokerage

ajit rai (student) (29 Points)

14 January 2019

Provision for GST on Brokerage?

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Sanjiv Rajpoot (3430 Points)
Replied 14 January 2019

GST rate on commission income: GST is mandatory for all commission agents, whether their annual turnover is above the threshold or not.
GST registration is compulsory for every person who makes taxable supplies of goods and services on behalf of another taxable person.
GST on brokerage: The tax will be applicable on any income earned through commission or brokerage services.
TDS is also deductible on GST bill relating to a commission value of a supply.
The rate of GST on commission (agent) services is 18 per cent.
Input credit is available for the GST on commission paid on these services.
GST is not applicable to foreign commission agents.
An agent is a person who is paid a commission for making supplies of goods and/or services on behalf of someone else (Principal). This includes brokers, auctioneer, commission agents and all other types of agents.

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Yugesh (Individual) (29 Points)
Replied 14 March 2020

Dear Sanjiv ji,

Is the threshold limit of Rs.20.00 lakhs per annum applicable for brokerage only if services are provided within state or will the same be also applicable if services are provided out of state ?

Could you pls. clarify the above, thank you.

Rgds/Yugesh