Whether any specific provision for mlm commision under gst?

This query is : Resolved

DASHRATH SINGH (Querist)
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25 August 2017 There is an ambiguity regarding the complaince for Network Marketers regarding GST . Network marketers /Multi level marketers are registered as distributors with the company like Herbalife etc . They will create a network under them(down line ) like chain marketing and they( all marketers at all levels ) will receive commision on the turnover made by all their downline marketers.They may /may not direct sell but they receive commision apart from profit margin ( if they sell products) so irrespective of whether they sell /not they wiill get sales commission if anyone in their downline sells products. Whether sales commsion which is subject to TDS u/s 194H can be treated as Consideration for supply of Service or anyother way to account it ?Who has to pay GST MLM(Multi level Marketing)Company or marketers ? What if they receive commison from turnover of downline and they also buy and sell products from MLM company @ margin ? Are there any special provisions regarding MLM companies in GST ? I would be glad if you can share any of your ecperience in dealing with Network marketers regarding Indirect Taxes compliance.. Thank you very much.

Amol S Joglekar

Amol S Joglekar (Expert)
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25 August 2017 service provider has to charge the GST in the invoice and the service recipient has to pay....
if service provider does not charge, service recipient has to pay it on reverse charge basis

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