Hello
Is any Businessman (proprietor) who is GST registered, earning commission or brokerage for sale of property then is he required to raise a gst invoice? if yes, then how much %. Also is any alteration required in GST certificate as initially only trading of goods is mentioned in the certificate?
Thank you
Dimpy
Yes, invoice can be raised.
GST rate for services, including commission or brokerage services, is 18%
I am an NRI selling property in India. My real estate agent is asking me to ay a gst of 18% on the commission. Should I as a seller pay this GST on the commission amount? Or the real estate agent should be paying it himself? Your professional inputs will be much appreciated. Thank you. Sandhya
As an NRI seller, you are not liable to pay GST on the commission amount. The real estate agent should pay the GST on their commission themselves. Here's why: 1. _Agent's income_: The commission earned by the real estate agent is their income. 2. _GST applicability_: GST is applicable on the agent's income, not on the property sale. 3. _Agent's responsibility_: The agent is responsible for paying GST on their commission. 4. _Section 2(105) of CGST Act_: Defines "supplier" as the person who supplies goods or services. In this case, the agent is the supplier of services. 5. _Notification No. 13/2017-Central Tax (Rate)_: Specifies that services provided by real estate agents are liable for GST. 6. _FAQs by CBIC_: Clarify that the agent is responsible for paying GST on their commission. Ensure you have a clear agreement with the agent, and they should provide you with a GST invoice for their commission. Verify the agent's GST registration and compliance to avoid any issues.
Thank you. I really appreciate your help. Sandhya
CCI
Pro
CAclubindia
