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Regarding Gst for transport commission

19 June 2020

is gst required for transport commission business ? if yes what Rate of tax we should pay on commission. some times I pay vehicle expenses like desiel. advnace and other expenses. above expenses amount will be repaid to my are credit back to my bank account. some time it cross over 30/40 lakhs. in this condition what should i do and how much tax i will pay are is tax/ Gst applicable on that amount are not please help

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5 Replies

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 19 June 2020

Alim please provide details on who is charged, advances given to whom, whether GST registered persons, and whether the expenses could be covered under pure agency principles under Rule 33 of CGST Rules.

Reimbursement of expenses may not amount to liability under GST, although, this has to be seen based on nature of transaction, agreements, etc.

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alim dada (124 Points)
Replied 19 June 2020

Sir business jo hai A (supplier) Aur B (Receiver) k darmiyan chal raha hai aur Mai jo hon B k liye agent ki tarah work kar raha hon inka jo bhi amount aata hai o mujhe mere bank account per aata hai mager a amount jo hai o Mera nahi hai mujhe bus commission diya jata hai .ab mai kya karon batayiye a jo amount turnover horaha hai a mere account se horaha hai Matlab mera account use horaha hai aise condition me mai kya karon sir mujhe bus commission milta hai.

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 19 June 2020

Sir if you're an agent, and charging only commission, if commission value (not sale value), is more than 20 lakh then you need to be registered under GST and pay the taxes. If registered, tax to be charged to B at 18%. Collect and pay to govt.

alim dada (124 Points)
Replied 19 June 2020

Thank u sir

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 19 June 2020

Agree with CA Akshay ji ,
As you do not cover under the Defination of Agent as prescribed u/s 2 (5) of CGST Act . so not required to obtain Registration unless your commission amount exceeds 20 lac in FY.