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Gst impact on mutual fund distributors

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This query is : Resolved

Vivek (Querist)
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23 June 2017 Is it mandatory for MF Distributors to register for GST even if the annual TO is less than Rs 20 Lacs, as FAQ from one of the AMC (https://www.miraeassetmf.co.in/mailers/gst_faq/GST_FAQs.pdf) states that all payments under GST will Attract Tax and that there is No Threshold limit that is applicable.

Kishen K Warrier

Kishen K Warrier (Expert)
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06 July 2017 As per section 24 of CGST Act, every persons making interstate taxable supply have to get registered irrespective of the turnover.If the MF distributor is in one state and MF head office in another state, the MF distributor will be making an intertstae supply.In such a case, he has to get registered irrespective of the turnover.
As most MF houses have thire HO in Mumbai, Distributors outside Maharshtra will have to get registered under GST.Alternatively ,MFs have decided to deduct GST from the commissions for unregistered dealers and pay it to Govt.This is as per recommendations of Pwc

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