my client has insurance commission as rs 24 lakh and mutual fund commission as rs 60000. is he liable to take registration under gst
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Quick Summary
This discussion clarifies GST registration requirements for a client earning insurance commission (Rs 24 lakh) and mutual fund commission (Rs 60,000). While insurance commission falls under Reverse Charge Mechanism (RCM), mutual fund commission is a taxable supply. Therefore, the client is liable for GST registration under Section 22, as they are not exclusively supplying exempted services. The aggregate turnover definition excludes RCM inward supplies, so the insurance commission is not counted towards the threshold limit for registration.
As per Section 9(3) R/w Notification 13/2017 Ct rate Insurance Commsion is Under RCM ,as it is supply on which tax is paid by recipient but since Mutual Fund Commission is Taxable Supply so you cannot enjoy the provsion of Section 23 (Not required to registered if Exclusively supplied exempted services) Thus as per Section 22 you are liable obtain registration.
But aggrregate turnover defination excludes inward supplies on which tax is payable by a person on reverse charge basis. so will insurance commission will be included for the threshhold limit