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RTO Agent should be register for GST or not if his turnover is above 50 lakhs.

Sandeep Kumar Singh (CA Article Assistant.) (78 Points)

30 May 2020

One of my client working in RTO department as an agent and providing services to the customers, he pays online fees to Govt from his current account and the transaction crossed over 50 lakhs limit also. now he is mandatory to register under gst himself or not...? And if yes plz explain it in details. Will all his Online transactions be counted as turnover or not. One more thing he is saying that he could make a cooperative society to prevent GST, if he becomes eligible for that. Is it possible.

Plz explain in detail.

THANK-YOU

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4 Replies

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 30 May 2020

Yes he is liable get himself registered if his total commission income Exceeds 20 lac pa as prescribed in section 22 of CGST act

1 Like

Sandeep Kumar Singh (CA Article Assistant.) (78 Points)
Replied 31 May 2020

But he don't pay the commission amount online he is paying only the govt fees online. Will his all online transaction will be counted as turnover.

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 31 May 2020

No.... Iam not talking about the fee he paid to RTO ,bit the commission he his earning from customer is his income. So if it's above 20 lac then he liable to obtain Registration

Sandeep Kumar Singh (CA Article Assistant.) (78 Points)
Replied 04 June 2020

Sir agreed that if his commission amount will increase ₹20 lakhs then he should register for GST but Sir my client is fearing from GST just because his current account transaction are getting higher day by day, in his current account in just 3-4 he had done ₹36 lakhs of transactions, so he is fearing from that. Is this okay that in current account transaction could go higher and no questions would be raised ever by sales department or any other department or by bank. That's my question. And sir also he don't has kept any record or books of accounts he don't prepare, that how much commission he earns, how I should dealt with this. Plz reply.