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Is gst registration mandatory

ravi agrawal (student) (1 Points)

20 March 2018

Sir
I am currently working as commission agent of various textile goods in state of BIHAR, city Muzaffarpur. 
In this, out of state supplier bills directly to Customer (B2B)
on our assurance and mentions our name in Agent column of bill.
At year end, supplier computes our agent commission at a fix rate
as decided earlier and credit the amount in our account. 
Will I be liable for GST?

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6 Replies

Vineet Goyal - indiaitr.com (Founder of IndiaITR.com) (184 Points)
Replied 20 March 2018

If your annual commission is more than 20 Lacs, then you need to register under GST.

Divakar (Student CA Final ) (11857 Points)
Replied 20 March 2018

As per section 24 of cgst act... Agent has to take mandatory gst no without any limit... So its better to take gst no.... If u received commission income

CA KANJ GOEL (OWNER) (1378 Points)
Replied 20 March 2018

agreed with Divakar mandatory registration for agent is required hence you should obtain GST n number.

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Vineet Goyal - indiaitr.com (Founder of IndiaITR.com) (184 Points)
Replied 21 March 2018

GST registration is not mandatory in this case.
"GST Act defines an Agent as a person including a factor, broker, commission agent, agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another".
Please note that supply of goods on behalf of another is the part of definition. Here, Ravi is just working as referral agents. He is not supplying goods on behalf of textiles firm.