Gst on commission

Abhishek Agarwal (article) (55 Points)

18 January 2019

Hello

In our business of transportation we pay commission to individuals who help us in grabing business opportunities and provide us customers

we had also pay commission to some sole proprietor firms as well

we had paid all the commission after deduction of 5% Tds on payable amount

now my qwery is that weather GST is also applicable on this commission????

we had not taken any bill from that individuals just paid them commission in their personal name bank account

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6 Replies

pritesh (CA Final student) (7101 Points)
Replied 18 January 2019

The commission agent is compulsory required to register under gst.

the person who is getting commission he is required to issue tax invoice.

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NITIN KOTAK (SERVICE) (1465 Points)
Replied 19 January 2019

this type of commission agent not required to register , only there turnover is taxable, this is service received from Unregistered dealer, Hance no need to pay any tax as per notification for unregistered dealer.

Aashish Bansal (Article) (698 Points)
Replied 19 January 2019

Yes correctly said. There is no requirement of paying gst on such commission.

Abhishek Agarwal (article) (55 Points)
Replied 19 January 2019

We are unregistered (as transporter co is exempt from gst registration) and that another person to whom we are paying commission is unregistered as well (as they are individuals) Are you sure their is no GST Liability on the same???