Gst on commission income below 20 lakhs

Hello,

I am earning Over Riding Commission (ORC) in my personal name for marketing products from various manufacturers in foreign countries.

The total   ORC I receive from Indian Manufacturers annually is below 20 lakhs. Am I liable for GST deduction by Indian manufacturers and also am I liable to have a GST registration, under which rule.

Ashok 

Replies (4)

If you are  agent  (commission )   GST registration is  compulsory   irrespective  of the  Turnover  , as per  section  24  (vii) of the CGST  act  2017 .  

please confirm with others also. 

Yes , its mandatory to get yourself registered in GST irrespect of Aggregate turnover is below 20 lacs (As per Section 24)
But I think as your query sounds that you are not Agent , infact your services fall under the defination of Intermediatary Services .

INTERMEDIARY :
As per Sec 2(13) of IGST Act, intermediary is a broker or an agent who arranges or the supply of goods or services or securities, between two or more persons. But an intermediary shouldn’t supply such goods or services or securities on his own account.

AGENT :

As per Sec 2(5) of CGST Act
agent” means a person, including a factor, broker, commission agent, arhatia, del credere
agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the
business of supply or receipt of goods or services or both on behalf of another.

Now the basic difference is the commission Agent issue bill to customer on his own name , means he reced goods from principal & supply the same to customer But in case of Intermediary Services the person never issue bill to customer his own name .

Hence when your services cover under intermediatary services then No need to obtain registration & if your services cover under commission Agent then you are compulsory need to obtain registration even if your aggregate turnover is below 20lac

More clarifications on same plz refer circular 57/31/2017 GST

Thanks for your response.

I do fall under intermediary service category as I do not generate any form of invoices and the vendor issues invoices directly the buyer. ted

Hence should GST of 18%  be deducted from my ORC amount by the vendor & will I have to obtain GST registration.

Ashok

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