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Gst registration in case of commision services

sweetyjain (assistant) (227 Points)

14 May 2018

If a pwrson engaged in business of commission services , and having a turnover of rs. 15 lakh , whether registration is required under gst law??????

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8 Replies

CA Ankit R Momaya (Partner at Bhat Momaya & Associates) (2316 Points)
Replied 14 May 2018

Since his turnover is less than Rs. 20 Lacs mandatory registration under GST is not required

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sweetyjain (assistant) (227 Points)
Replied 14 May 2018

but commision agent required to take compulsory registration under section 24

CA Ankit R Momaya (Partner at Bhat Momaya & Associates) (2316 Points)
Replied 14 May 2018

Is he agent or simply rendering commission services ?
Both are different activities.

sweetyjain (assistant) (227 Points)
Replied 14 May 2018

commisioning services includes which type of services ......

Pankaj Rawat (GST Practitioner) (55042 Points)
Replied 15 May 2018

As per section 24 CGST act ( compulsory registration)

vii] persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

AND

As per definition of agent
Section 2(5) of The Central Goods and Services Tax Act, 2017 provides for definition of agent as follows: “agents” means a person including a factor, broker, commission agent, arhatia, del credere agent, or an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another.

So commsion agent has to registered irrespective of turnover

INTERMEDIARY SERVICES
-------–-----------------------------------
But the commsion agent who not supply service or goods on behalf cover under intermediary Agent (who does for himself) like property dealer is not cover under above agent defination so not compulsory registration u/s 24 CGST act

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Shashank Saxena (Student CA Final ) (96 Points)
Replied 16 May 2018

As per 24 of CGST Act persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise shall be required to be registered under GST.

As per sec 2(13) of IGST Act intermediary is a broker or an agent who arranges the supply of goods or services or both or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account.

As per Sec 2(5) of CGST Act the term “Agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another.

However following commission incomes if earned by an agent will not require him to register under GST because Govt. has exempted these services from registration vide notification no. 5/2017 (Reverse Charge) and in exemptions to agriculture sector (Heading 9986):

1. Insurance agent services to any person carrying on insurance business.

2. Recovery agent services to Banking Co, Financial Institution, NBFC.

3. Commission agents services on sale or purchase of agricultural produce in primary market.

Hope the above information is helpful.

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subhagan sreerangam (7040 Points)
Replied 23 September 2018

Commission agent to make a compulsory registration in GST U/s 24.

CMA Md Rehan (Cost Auditor || GST Auditor || Consultant) (22 Points)
Replied 21 January 2019

The said interpretation :

If we interpret above provisions and definitions we can see that registration is compulsory for an agent and definition of intermediary includes agent and definition of agent also includes commission agent.So it is clear that an agent is compulsorily required to register under GST irrespective of the threshold limit of Rs. 20 Lakh. which is now 40 Lakhs in case of supply of goods and Rs. 20 Lakhs in case of Supply of Service.

The above is well explained and i am agree with you that even intermediary is defined in section 2 (13) of IGST Act as Intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account.

The term broker, agent or any other person is used here and also section 20 of IGST Act says the provision of registration of CGST Act shall apply in IGST Act and mandatory registration in CGST Act clearly explained for Agent, Broker or any other person who does not act in his own name.

CMA Md Rehan