GST clarification for MF distributor

Dear Sir / Madam,

I am MF distributor whose income will exceed 20 lakhs this FY: 2021-22. My questions are as below - could anyone clarify them please? 

  1. Will I have to register for GST this FY itself after my income has crossed 20 lakhs (or) if it crosses 20 lakhs this year, then next FY only will I have to register for GST? 
  2. When I register & start paying GST, will I be paying personal Income Tax too? In that case, won't the total tax be 18% (GST) + 30% personal tax = 48% total tax? 

 

 

Replies (2)
Quick Summary
This discussion seeks clarification on Goods and Services Tax (GST) for Mutual Fund (MF) distributors whose income is projected to exceed 20 lakhs in the current financial year. Key questions revolve around the timing of GST registration, whether it's immediate or applicable from the next financial year, and the combined tax burden of GST and personal income tax. The user also seeks guidance on specific scenarios involving clients and fund houses across different states and NRI clients.

If you are trader and not doing business from special states, then the limit of registration will be 40 lakhs and not 20 lakhs

Thank you Mr. Mujeeb. I am a Mutual Fund distributor who is a sub-broker. I am from Tamilnadu. The broker has his office in Gujarat & my clients will be spread across Bangalore, Tamilnadu, Kerala, Hyderabad, Mumbai, Kolkata & NRI clients too. As such, the indovidual fund houses will have their registered offices mostly in Mumbai but may be in other parts of India too. 

Kindly let me know in this case. 

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