Gst on commission income as a buying agent.
This query is : Resolved
25 July 2017
Dear Sir, I am a Buying Agent. A person who acts as a link between foreign buyers and Indian Exporters/Manufacturers. Our income is generally a %age of the value of business, paid either by the seller(Th. Cheqe/RTGS) or by the overseas purchaser (Th. international wire transfer). We are located in Uttar pradesh but the Exporters that Pay us commission are located in different states.
Prior to GST, we weren't required to register for Service tax as our total receipts from India were below 9 lacs in a given FY. All we paid was income Tax. We field our income tax as a self employed person.
Now, with GST on board, how does our taxability change? Do we require to register for GST even if our total receipts are less than 20 lacs in a given FY?
Please provide some clarity over this matter.
Prior to GST, we weren't required to register for Service tax as our total receipts from India were below 9 lacs in a given FY. All we paid was income Tax. We field our income tax as a self employed person.
Now, with GST on board, how does our taxability change? Do we require to register for GST even if our total receipts are less than 20 lacs in a given FY?
Please provide some clarity over this matter.
25 July 2017
As per section 24(vii) a person who makes taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise will have to compulsorily get themselves registered. As you are a buying agent, you are an agent but you are not supplying any goods on behalf of other. Therefore in my opinion if your turnover is less than 20 Lakhs there is no requirement of registration provided you dont give inter-state service.
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25 July 2017
Zafar Sahab, Shukriya! Can you opine what qualifies for an 'inter-state service'? My work involves just being at my office and co-ordinate the business affairs on internet. The Exporter, who pays me commission could be located next door, or in a different state altogether. Is this an inter-state service?
25 July 2017
If you raise an invoice on the exporter whose address on your invoice is different from your state it is an inter state supply. In such cases compulsory registration is required.
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25 July 2017
This is indeed a clear and crisp information! I am sure GST registration can be done online. Am I correct? Would you be able to guide me to that link? Also Does compulsory registration means compulsory tax? Will I have to pay GST, even if I earn commission less than 20 lacs a year? if yes, am I eligible for the composition scheme?
25 July 2017
Once you are registered you have to pay taxes. There is no exemption. Since you are a service provider composition scheme is not available.
All registrations need to be done online. To register go to gst.gov.in. There select the tab new registration and follow the procedures.
All registrations need to be done online. To register go to gst.gov.in. There select the tab new registration and follow the procedures.
25 July 2017
And what shall be the %age of GST applicable? And Thanks a lot for the Valuable opinions!
25 July 2017
Its 18%.
You are welcome
You are welcome
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