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Services provided by direct selling agents

ajay (Student) (178 Points)

10 March 2020

whether gst will be applicable on services provided to mlm companies??

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11 Replies

Sonu Maheshwari (Jr. Account & Finance Manager) (213 Points)
Replied 10 March 2020

Please explain which type of service you provide

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ajay (Student) (178 Points)
Replied 10 March 2020

The person is selling Qnet products and Qnet is deducting TDS as per 194h of income tax act. So my query is whether the person is required to be required under gst?

Sonu Maheshwari (Jr. Account & Finance Manager) (213 Points)
Replied 10 March 2020

If service supplier turnover above 40 lakh in the year or crossed then he required to register under gst otherwise not required to register

ajay (Student) (178 Points)
Replied 10 March 2020

Thanks for replying fast. If same person providing services to SBI then what will be the gst implications??

Sonu Maheshwari (Jr. Account & Finance Manager) (213 Points)
Replied 10 March 2020

Same as above.... supplier gross turnover crossed to specify limit then he require to register under gst

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ajay (Student) (178 Points)
Replied 10 March 2020

So the conclusion is if dsa's commission income exceeds 40L then dsa is liable to register under gst.
Case 1: if DSA providing services to mlm companies like Qnet who is liable to pay gst? whether it is Qnet or DSA.
Case 2: if DSA providing services to banking companies like SBI who is liable to pay gst?
whether it is SBI or DSA

Sonu Maheshwari (Jr. Account & Finance Manager) (213 Points)
Replied 10 March 2020

DSA is DIRECT SELLING AGENT and he has required compulsory registration under gst because services provided by DSA under Reverse charges

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 10 March 2020

Yes As per Notification 15/2018 CT(R)

Individual Direct Selling
Agents (DSAs) other than a body coporate ,partnership or limited
liability partnership firm , providing services to bank or Non financial institution is under RCM .

So if you are providing services to MLM company then need to charge GST on FC .
And you are providing services to Bank then Bank is liable to deposit GST Under RCM .

As DSA services are cover under 9(3) hence as per Notification 5/2017 CT if you are providing services to Receptient who is not liable to do RCM , then in this case your liable to obtain Registration .