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GST on commission income

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Sudevi Dokania

22 Points Posted on 25 August 2020

I am getting commission income from bank as I am a registered DSA for getting loans. What shall be the threshold limit for GST registration? Also will I fall under RCM category as I am getting commission from financial institution?

Replies (2)

Quick Summary

If you receive commission income as a registered Direct Selling Agent (DSA) from a bank or NBFC, you generally don't need to register for GST. This is because the bank or NBFC will pay GST under the Reverse Charge Mechanism (RCM). GST registration is only required if your total taxable supplies exceed the threshold limit (Rs. 20 lakh, or Rs. 10 lakh for North-Eastern states) and you have other taxable income streams.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 25 August 2020

Services supplied by individual Direct Selling Agents (DSAs) to A banking company or a non-banking financial company fall under the RCM category, So, you are not required to Pay any GST on Commission received as DSA.
So, GST registration is not required as you have not any GST liability. (Bank will Pay GST as recipient of services)

If you have any other taxable Supplies along with this, than You are required to take GST registration if it's crossed the threshold of Rs. 20 lakh (10 lakh for north-eastern State)