Gst compliance for network marketers / multi level marketers

moulichaitanya gangupam (article assistant) (49 Points)

25 June 2017  

Dear all ,

Thanks a lot for the knowledge you have shared for my earlier query.

There is an ambiguity regarding the complaince for Network Marketers regarding GST .

Network marketers /Multi level marketers are registered as distributors with the company like Herbalife etc .

They will create a network under them(down line ) like chain marketing and they( all marketers at all levels ) will receive commision on the turnover made by all their downline marketers.They may /may not direct sell but they receive commision apart from profit margin ( if they sell products) so irrespective of whether they sell /not they wiill get sales commission if anyone in their downline sells products.

Whether sales commsion which is subject to TDS u/s 194H can be treated as Consideration for supply of Service or anyother way to account it ?Who has to pay GST MLM(Multi level Marketing)Company or marketers ?

What if they receive commison from turnover of downline and they also buy and sell products from MLM company @ margin ?

Are there any special provisions regarding MLM companies in GST ?

I would be glad if you can share any of your ecperience in dealing with Network marketers regarding Indirect Taxes compliance..

 

Thank you very much