IS RCM APPLICABLE FOR POST OFFICE AGENT

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This query is : Resolved

Quick Summary

This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) for post office agents. While RCM is generally not applicable, agents exceeding the GST threshold limit of 20 Lakhs in commission will require GST registration. The consensus suggests that post office agents, similar to direct selling agents, may fall under RCM provisions as per Section 9(3) of the GST Act.

ATUL

ATUL (Querist)

10 September 2023 Hi All,
one of my client is working as an post office agent and he receives commission the commission received in this F.Y. will be crossing the limit of 20 Lacs my query is RCM applicable to post office agent as applicable to LIC, mutual fund agent is there any formality to be followed

Thanks in Advance

RAJA P M

RAJA P M (Expert)

11 September 2023 RCM not applicable. But, If cross threshold limit then required GST registration.

ATUL

ATUL (Querist)

16 September 2023 As per 9(3) of gst act RCM is applicable to individual Direct selling agents n post office agents are also an direct selling agents so RCM will be applicable to them also

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