Gst on commission income

If your commission income is Rs. 9 lakhs then obviously your turnover will be > 20lakhs. Therefore you are liable to register yourself under GST law.

my turnover is 9 lakh in the form of commission income

You must me selling some goods or providing some service to earn the commission income. Value of sale of such goods or value of such service will be your turnover and not the commission amount even if you supply on behalf of your principal

as per section 2CGST Act

aggregate turnover" means the aggregate value of all taxable supplies [excluding the value of inward supplies on which tax is payable by a person on reverse charge basis], exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

so if ur aggregate turnover exceeds to 20 lac then registration is mandatory

so if registration in mandatory u have to register .. after that u will be getting gstin number.. then u will be raising him a invoice for commission income..if u r a sole proprieter then it doesn't matter in which account u receive.. if it is a patnership and u receive it in ur personal account .. still the gst chain continues if in returns from both sides the invoice is confirmed..

In both the cases u hv to collect gst and pay to the government... In proprietorship there is no personal.... Both r same.... And if u hv not gst no... Then u hv to take cumpulsory gst no without any threshold exemption limit under section 24....pay ur gst on commission income... Thats all

If you are earning commission, you have to get yourself registered under GST Act. There is no basic exemption for registration in case of commission income. So, if you are earning commission of even a sigle paisa, technically, you have to get yourself registered.

Circular No. 57/31/2018-GST

Scenario 1

Mr. A appoints Mr. B to procure certain goods from the market. Mr. B identifies various suppliers who can provide the goods as desired by Mr. A, and asks the supplier (Mr. C) to send the goods and issuethe invoice directly to Mr. A. In this scenario, Mr. B is only acting as the procurement agent, and has in no way involvedhimself in the supply or receipt of the goods. Hence, in accordance with the provisions of this Act, Mr.B is not an agent of Mr. A for supply of goods in terms of Schedule I.

Scenario 2

M/s XYZ, a banking company,appoints Mr. B (auctioneer) to auction certain goods. The auctioneer arranges for the auction and identifies the potential bidders. The highest bid is accepted and the goods are sold to the highest bidder by M/s XYZ. The invoice for the supply of the goods is issued by M/s XYZ to the successfulbidder. In this scenario, the auctioneer is merely providing theauctioneeringservices with no role played in the supply of the goods. Even in this scenario,Mr.B is not an agent of M/s XYZ for the supply of goods in terms of Schedule I.

Scenario 3

Mr. A, an artist,appoints M/s B (auctioneer) to auction his painting. M/s B arranges for the auction and identifies the potential bidders. The highest bid is accepted and the painting is sold to the highest bidder. The invoice for the supply of the painting is issued by M/s B on the behalf of Mr. A but in his own name and the painting is delivered to the successful bidder. In this scenario, M/s B is not merely providing auctioneering services, but is also supplying the painting on behalf of Mr. A to the bidder, and has the authority to transfer the title of the painting on behalf of Mr. A. This scenario is covered under ScheduleI.A similar situation can exist in case of supply of goods as well where the C&F agent or commission agent takes possession of the goods from the principal and issues the invoice in his own name. In such cases, the C&F/commission agent is an agent of the principal for the supply of goods in terms of Schedule I. The disclosure or non-disclosure of the name of the principal is immaterial in such situations.Scenario 4 Mr A sells agricultural produceby utilizing the services of Mr B who is a commission agent as per the Agricultural Produce Marketing CommitteeAct (APMC Act) of the State. Mr B identifies the buyers and sells theagricultural produce on behalf of Mr. A for which he charges a commission from Mr. A. As per the APMC Act, the commission agent is a person who buys or sells the agricultural produce on behalf of his principal, or facilitates buying and selling of agricultural produce on behalf of his principal and receives,by way of remuneration,a commission or percentage upon the amount involved in such transaction. In cases where the invoice is issued by Mr. Bto the buyer, the formeris anagent covered underSchedule I. However, in cases where the invoice is issued directly by Mr. A to the buyer, the commission agent (Mr. B) doesn‟t fall under the category of agent covered under Schedule I.

 

In scenario 1 and scenario 2, Mr. B shall not be liable to obtain registration in terms of clause (vii) of section 24 of the CGST Act. He,however,would be liable for registration if his aggregate turnover of supply of taxable services exceeds the threshold specified in sub-section (1) of section 22 of the CGST Act. In scenario 3, M/s B shall be liable forcompulsory registration in terms of the clause (vii) of section 24 of theCGST Act. In respect of commission agents in Scenario 4, notification No. 12/2017 Central Tax (Rate) dated 24.06.2017 has exempted “services by any APMC or board or services provided by the commission agents for sale or purchase of agricultural produce”from GST. Thus, the „services‟ provided by the commission agent for sale or purchase of agricultural produce is exempted. Such commission agents (even when theyqualify as agent under Schedule I) are not liable to be registeredaccording to sub-clause (a) of sub-section (1) of section 23 of the CGST Act, ifthe supply of the agricultural produce, and /or other goods or services supplied by themare not liable to tax or wholly exempt under GST.However, in cases where the supply of agricultural produce is not exempted and liable totax, such commission agent shall be liable for compulsory registration under sub-section (vii) of section 24 of the CGST Act.

I don't   have GST registration. But I am earning my money through commission income. My Early income is between 4 to 5 Lacs. Please suggest whether I should register in GST or not.