Individual working for a firm to take sales orders on fixed commission basis

1. No.
2.  File commission income under normal assessment.
3. GST registration mandatory.
4.  Yes.

Sales representative (not an employee) earning commission:

• Commission income is business income, but 44AD excludes commission (Sec 44AD(6)). So no presumptive taxation; compute actual profits (commission minus expenses) and file ITR-3. Books are needed if income exceeds Rs 2.5 lakh or turnover Rs 25 lakh.

• GST: commission agents' services are taxable at 18% (above Rs 20 lakh, register).

Income tax: Commission earned as an independent sales representative is generally business income, but it is specifically excluded from presumptive taxation under both sections 44AD and 44ADA. The fact that the work resembles sales or marketing services does not, by itself, make it an eligible profession under section 44ADA. He should generally report actual business income and expenses and maintain the applicable books; having 2–3 employees does not change the exclusion.

• GST: At ₹36 lakh annual commission, he will ordinarily cross the GST registration threshold for services (₹20 lakh in most States; ₹10 lakh in specified special-category States). Subject to any applicable exemption or special fact, registration is therefore required. Commission is generally taxable at 18%; once registered, he must issue tax invoices and file GST returns. Monthly filing is not automatic: eligible taxpayers may opt for the QRMP scheme, which permits quarterly GSTR-1 and GSTR-3B filing, with monthly tax payments. Whether the recipient must pay GST under reverse charge depends on the precise agency arrangement and recipient; confirm the contract and service classification.
• Local-body registration: This depends on the State/municipality and the nature and location of the establishment. A separate office and employees may trigger local trade licence, Shops and Establishments registration, or other local requirements even if the business is small. Check the applicable local rules.

These facts should be mapped to the commission agreement, invoices, State of operation and recipient before finalising the tax and GST treatment. Commission billing and GST compliance are closely linked, so a clear workflow helps avoid missed registrations and return obligations. Manual practice work is difficult, and automation reduces repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For a practical walkthrough, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1