GST liability

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This discussion clarifies GST registration requirements for commission agents. Unlike other businesses, commission agents are generally required to register for GST compulsorily, irrespective of their turnover. This means that even if the annual income is below the usual threshold, GST registration may still be necessary, and invoices with GST would need to be raised.

Shampa Mandal

Shampa Mandal (Querist)

18 February 2021 Dear sir,
My brother is working as collection & recovery agent of a proprietorship concern on commission basis. He received commission after deduction of TDS. He does not raise Invoice. Total amount received from April 2020 to January 2021 is Rs.560354. Does he liable for GST registration and raise invoice with GST ?

Lekhraj sood

Lekhraj sood (Expert)

18 February 2021 No, GSt registration not required till 20 Lakhs Rs.

Shampa Mandal

Shampa Mandal (Querist)

20 February 2021 Dear Sir,
A Commission Agent is required to obtain Compulsory Registration u/s 24(vii) of CGST Act, irrespective of its turnover. Thus, the threshold limit of Rs.20 lakh as enunciated in section 22(1) of CGST Act, does not apply to an Agent.
My brother is a collection and recovery agent working on the basis of commission.
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