Gst on brokerage

Brokerage Paid to unregistered real estate agent liable for gst under RCM or not
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Quick Summary
This discussion clarifies whether GST is applicable under the Reverse Charge Mechanism (RCM) when brokerage is paid to an unregistered real estate agent. It explains that if a registered dealer receives services from an unregistered supplier, the registered dealer is liable to pay GST directly to the government under RCM. The standard GST rate for agent services is 18%.

Supply from an Unregistered dealer to a Registered dealer

If a vendor who is not registered under GST, supplies goods to a person who is registered under GST, then Reverse Charge would apply. This means that the GST will have to be paid directly by the receiver to the Government instead of the supplier.

The registered dealer who has to pay GST under reverse charge has to do self-invoicing for the purchases made.

For Inter-state purchases the buyer has to pay IGST. For Intra-state purchased CGST and SGST has to be paid under RCM by the purchaser.

Can you please share the relevant circular

GST at 18% is applicable to all taxable value of supply provided by an agent, including the sale/purchase of advertising space/time.

We provide a GST Registration, Let us know If you need to register for the same.

 

 

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