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Pigmy collection agent

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This query is : Resolved

AKSHAYA JENA (Querist)
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05 November 2017 Sir I am working at odisha gramya bank as daily deposit agent on commission basis.@2%.My monthly income is 18000 .Do I give gst for that commission. Bank Commission agent is under reverse charge mechanism or not ..?.Government notification is that Rcm is suspended till 31.03.18.so we do not give gst or not.we are unresistered agent working under resistered bank.We are 300 agents working at bank .Our individual commission is under 20 lakh.If we do not illigible to pay gst ?But bank deduct gst from our commission from July 2017.Bank says they pay gst for commission agent so they deduct from our commission. Is it true bank are eligible for pay gst for us or not.

CA Rohit Sinha

CA Rohit Sinha (Expert)
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06 November 2017 GST under Reverse Charge Mechanism is applicable on Recovery agents. It appears that you are not a recovery agent. Hence RCM is not applicable on you.

RCM on services received from unregistered dealer is suspended till 31.03.2018 hence bank also not required to deposit GST under RCM.

You need not to be registered until your commission income exceed 20 lakhs.

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