24 July 2020
DEAR SIRS : ONE OF MY CLIENTS IS BASED IN RAJASTHAN.... HE HAS TO PAY SALES COMMISSION OF RUPEES ONE LAKH TO SOME UNREGISTERED DEALER (INDIVIDUAL) IN DELHI.......MY QUERY IS :: CAN THIS TRANSACTION BE COMPLETED THROUGH RCM.... OR GST REGISTRATION IS MANDATORY FOR PERSON RECEIVING COMMISSION
02 August 2020
GST rate on commission income is 18%, GST is mandatory for all commission agents, whether their annual turnover is above the threshold limit or not. GST registration is compulsory for every person who makes taxable supplies of goods and services on behalf of another taxable person. No RCM ़़़़़़़़only forward charges.
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