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Commission

prince verma (audit trainee) (124 Points)

22 February 2020

my brother had started tourism business.. he received commission from some certain air travel agents on booking of air tickets through them. whether he is required to obtain gst no. ?

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6 Replies

Kumar Sushank (General Manager - Finance) (1040 Points)
Replied 22 February 2020

If travel agents are in same state & turnover is not more than 20 lacs, Then GST Registration is not mandatory.

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Nikhil Kothari (CEO at Sequinox Business Advisories) (4671 Points)
Replied 22 February 2020

The concept is of Pure Agent where agent books ticket on behalf of Principal (clients), so depending on the quantum of turnover of commission receipt applicability of GST has to be decided.

The State have power to decide the turnover limit to be applicable for GST registration, say in Karnataka its 40 Lacs where as in other state its 20 Lacs.

The above provision is for mandatory registration, for voluntary registration no turnover limit applicable.

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prince verma (audit trainee) (124 Points)
Replied 22 February 2020

@ kumar sushank.
as my brother rec commission in sep.oct.nov.dec.2019.
as according to ur view. he needs to obtain gst as all travel agents are delhi based. and he is ounjab based.
so if he obtain gst no. now. would he be required to deposit gst on commission rec earlier. ?