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Whether Gst no. is required for Brokers even their commission below rs. 20 lakhs

23 July 2018

my client is having a mere commission/brokerage income of rs. 66964. whether GST registration is compulsory for her... Somedays ago i have read that any commission agent having any income from commission is required to registered under GST Act. I have doubt that the rule of turnover of Rs 20 lacs must be applied. Kindly clarify the same.

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4 Replies

prasad Nilugal (3914 Points)
Replied 23 July 2018

For agents compulsory ragistrarion under section 22 (vii) of the CGST act 2017 , please confirm.

4 Like

Vinod Babu (24191 Points)
Replied 23 July 2018

Type of sectors in which agents are doing business

Real estate

Agriculture

Financial like

Insurance

Banking(loan processing)

Mutual Funds

Share market as broker

Manufacturing

Transportation

So as we can see that from the above few examples agents are covered under various industry of country

Taxability

As per GST section 24 agents are compulsory required themselves to get them registered with gst and pay gst @ 18% on commission earned by them

However there are few agents Income which are exempt by the law

Agents involved in the agriculture sector for selling the primary agriculture produce in primary market

Insurance agent income serving services to any person doing insurance business than there income will be covered under rcm and they are not required to get themselves registered if they possess only income from insurance company

After that no other income is exempt under law

Therefore all other income as commission agent is taxable.

2 Like

Anurag Kalra (Dy Manager) (52 Points)
Replied 24 July 2018

commission paid on sale of agricultural land......and receiver of commission not registered under GST but payer of commission is registered under GST......what will be the effect in GST for playing the commission..... whether any RCM on this ?

1 Like

Jay Mittal (23 Points)
Replied 24 July 2018

my client takes order of broken rice from commission agents/aadhti (one who does their business from grain markets) and supply them from rice shellers... upon this he/she earns brokerage... last year earned only rs. 66964 after deducting TDS. whether he/she required to registered under GST??? Kindly suggest accordingly.