Saurav (CA) (211 Points)
27 April 2018Hello,
1. I want know that i have GST no. but i am taking commission income in my personal account whether i have to collect Gst even i am taking that amount in my personal account not in Firm account.
2. I dont have Gst no . and i am receiving commission income in my person account whether i have to collect gst on that commission as there is no thershold limit for commission income
commission amount 9 lakh
please reply??
CA Shivam Arora
(Chartered Accountant)
(2414 Points)
Replied 27 April 2018
If your commission income is Rs. 9 lakhs then obviously your turnover will be > 20lakhs. Therefore you are liable to register yourself under GST law.
Saurav
(CA)
(211 Points)
Replied 27 April 2018
my turnover is 9 lakh in the form of commission income
CA Shivam Arora
(Chartered Accountant)
(2414 Points)
Replied 27 April 2018
You must me selling some goods or providing some service to earn the commission income. Value of sale of such goods or value of such service will be your turnover and not the commission amount even if you supply on behalf of your principal
Pankaj Rawat
(GST Practitioner)
(55047 Points)
Replied 27 April 2018
Shaik Sharief
(Article Assisant)
(87 Points)
Replied 28 April 2018
Divakar
(Student CA Final )
(11857 Points)
Replied 28 April 2018
Sanjay Kabra
(Proprietor)
(29 Points)
Replied 29 April 2018
If you are earning commission, you have to get yourself registered under GST Act. There is no basic exemption for registration in case of commission income. So, if you are earning commission of even a sigle paisa, technically, you have to get yourself registered.
SURANA
(PROPRIETOR)
(515 Points)
Replied 07 March 2019
Circular No. 57/31/2018-GST
Scenario 1
Mr. A appoints Mr. B to procure certain goods from the market. Mr. B identifies various suppliers who can provide the goods as desired by Mr. A, and asks the supplier (Mr. C) to send the goods and issuethe invoice directly to Mr. A. In this scenario, Mr. B is only acting as the procurement agent, and has in no way involvedhimself in the supply or receipt of the goods. Hence, in accordance with the provisions of this Act, Mr.B is not an agent of Mr. A for supply of goods in terms of Schedule I.
Scenario 2
M/s XYZ, a banking company,appoints Mr. B (auctioneer) to auction certain goods. The auctioneer arranges for the auction and identifies the potential bidders. The highest bid is accepted and the goods are sold to the highest bidder by M/s XYZ. The invoice for the supply of the goods is issued by M/s XYZ to the successfulbidder. In this scenario, the auctioneer is merely providing theauctioneeringservices with no role played in the supply of the goods. Even in this scenario,Mr.B is not an agent of M/s XYZ for the supply of goods in terms of Schedule I.
Scenario 3
Mr. A, an artist,appoints M/s B (auctioneer) to auction his painting. M/s B arranges for the auction and identifies the potential bidders. The highest bid is accepted and the painting is sold to the highest bidder. The invoice for the supply of the painting is issued by M/s B on the behalf of Mr. A but in his own name and the painting is delivered to the successful bidder. In this scenario, M/s B is not merely providing auctioneering services, but is also supplying the painting on behalf of Mr. A to the bidder, and has the authority to transfer the title of the painting on behalf of Mr. A. This scenario is covered under ScheduleI.A similar situation can exist in case of supply of goods as well where the C&F agent or commission agent takes possession of the goods from the principal and issues the invoice in his own name. In such cases, the C&F/commission agent is an agent of the principal for the supply of goods in terms of Schedule I. The disclosure or non-disclosure of the name of the principal is immaterial in such situations.Scenario 4 Mr A sells agricultural produceby utilizing the services of Mr B who is a commission agent as per the Agricultural Produce Marketing CommitteeAct (APMC Act) of the State. Mr B identifies the buyers and sells theagricultural produce on behalf of Mr. A for which he charges a commission from Mr. A. As per the APMC Act, the commission agent is a person who buys or sells the agricultural produce on behalf of his principal, or facilitates buying and selling of agricultural produce on behalf of his principal and receives,by way of remuneration,a commission or percentage upon the amount involved in such transaction. In cases where the invoice is issued by Mr. Bto the buyer, the formeris anagent covered underSchedule I. However, in cases where the invoice is issued directly by Mr. A to the buyer, the commission agent (Mr. B) doesn‟t fall under the category of agent covered under Schedule I.
In scenario 1 and scenario 2, Mr. B shall not be liable to obtain registration in terms of clause (vii) of section 24 of the CGST Act. He,however,would be liable for registration if his aggregate turnover of supply of taxable services exceeds the threshold specified in sub-section (1) of section 22 of the CGST Act. In scenario 3, M/s B shall be liable forcompulsory registration in terms of the clause (vii) of section 24 of theCGST Act. In respect of commission agents in Scenario 4, notification No. 12/2017 Central Tax (Rate) dated 24.06.2017 has exempted “services by any APMC or board or services provided by the commission agents for sale or purchase of agricultural produce”from GST. Thus, the „services‟ provided by the commission agent for sale or purchase of agricultural produce is exempted. Such commission agents (even when theyqualify as agent under Schedule I) are not liable to be registeredaccording to sub-clause (a) of sub-section (1) of section 23 of the CGST Act, ifthe supply of the agricultural produce, and /or other goods or services supplied by themare not liable to tax or wholly exempt under GST.However, in cases where the supply of agricultural produce is not exempted and liable totax, such commission agent shall be liable for compulsory registration under sub-section (vii) of section 24 of the CGST Act.
Deepankar Bose
(2 Points)
Replied 05 July 2019
I don't have GST registration. But I am earning my money through commission income. My Early income is between 4 to 5 Lacs. Please suggest whether I should register in GST or not.
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