Commission agent gst registration requirement????

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This query is : Resolved

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This discussion clarifies GST registration requirements for individuals earning commission from LIC, general insurance, and NBFCs, with an annual turnover under 20 lakh rupees. Due to the Reverse Charge Mechanism (RCM) applicable to insurance services, these agents typically do not need to register for GST. However, registration may be required if their total turnover from other taxable services exceeds the 20 lakh threshold or if they provide services not covered by RCM.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)

19 December 2024 if a individual person having income from LIC agency commission, general insurance and nbfc companies connector code(commission) and turnover is less than 20 lac yearly
Is he required to register under GST???
please guide

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 December 2024 Notification No. 13/2017-Central Tax (Rate): This notification specifies that the recipient of services in the insurance sector is liable to pay GST under RCM.
So, In most cases, these agents are not required to register for GST due to the reverse charge mechanism (RCM). If an agent's aggregate turnover from other sources (besides LIC commission) exceeds the threshold limit of ₹20 lakh (₹10 lakh for special category states), they may be required to register for GST.
If the agent provides other taxable services not covered by RCM, it could also trigger GST registration.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)

19 December 2024 Thanks for your prompt reply Sir1

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 December 2024 You are welcome.

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