Pre gst registration in Mutual fund Distributor commission received
This query is : Resolved
22 May 2025
As per subject pre gst registration brokerage received how to pay tax after gst registration mutual fund distributor. Threshold limit exceed 20 lac (Gst registration in composition)
12 August 2025
How to treat brokerage/commission received before GST registration?
Pre-GST Registration Brokerage
Brokerage/commission received before GST registration is treated as income from business but GST is not applicable on these amounts.
No GST liability arises on pre-registration receipts.
Post-GST Registration Brokerage
Once registered under GST (even under Composition scheme), brokerage/commission for services rendered after registration date are subject to GST.
Composition dealers pay GST at prescribed rates on turnover but cannot charge GST separately on invoice.
For mutual fund distributors, brokerage is generally treated as services with GST rate applicable (usually 18%).
Filing and Payment
For pre-registration income, no GST returns are required for those amounts.
From the date of registration onwards, include turnover in GST returns and pay tax as per composition scheme rules.
Pre-GST Registration Brokerage
Brokerage/commission received before GST registration is treated as income from business but GST is not applicable on these amounts.
No GST liability arises on pre-registration receipts.
Post-GST Registration Brokerage
Once registered under GST (even under Composition scheme), brokerage/commission for services rendered after registration date are subject to GST.
Composition dealers pay GST at prescribed rates on turnover but cannot charge GST separately on invoice.
For mutual fund distributors, brokerage is generally treated as services with GST rate applicable (usually 18%).
Filing and Payment
For pre-registration income, no GST returns are required for those amounts.
From the date of registration onwards, include turnover in GST returns and pay tax as per composition scheme rules.
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