Tax


This query is : Resolved 

Quick Summary
This discussion clarifies whether an unregistered insurance agent needs to charge GST on commissions received. The consensus is that GST is not charged by the agent. Instead, the insurance company is liable to pay GST under the reverse charge mechanism (RCM) as per Section 9(3) of the GST Act. This is a common practice where companies deduct GST from the agent's commission to cover their liability.

(Querist)
08 April 2020 Mr. Bhudev Aggarwal, an unregistered person receives commission of Rs. 21,00,000/-
as an insurance agent from insurance company. Will he be required to charge GST on
the same.

08 April 2020 Insurance agent commission falls under reverse charge u/s 9(3). So companies have to pay GST on agent's behalf and this si the same excuse they give to agent while deducting GSt from agent's commision.

08 April 2020 No GST is required to be charged by the agent because GST will be paid by the insurance company under RCM


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