Rcm applicable on commission
This query is : Resolved
CA Rashmi Gandhi
(Expert)
16 April 2018
No........
20 July 2025
Yes, RCM (Reverse Charge Mechanism) is applicable on commission payments in certain cases:
If you (the recipient) are a registered person under GST and you pay commission to an unregistered person (individual, firm, or company), then RCM applies.
You have to pay GST on commission received under reverse charge and deposit it with the government.
However, if the commission is paid to a registered supplier (registered under GST), then the supplier will charge GST normally on the invoice, and RCM will NOT apply.
If you (the recipient) are a registered person under GST and you pay commission to an unregistered person (individual, firm, or company), then RCM applies.
You have to pay GST on commission received under reverse charge and deposit it with the government.
However, if the commission is paid to a registered supplier (registered under GST), then the supplier will charge GST normally on the invoice, and RCM will NOT apply.
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