MUTUAL FUND DISTRIBUTORS ELIGIBLE FOR GST REGISTRATION

Mutual fund distributors are service providers to the AMC and their commission income (trail + upfront) is subject to GST. Here is how the rules apply:

GST REGISTRATION THRESHOLD: Rs 20 lakh aggregate turnover per year (Rs 10 lakh for special category states). Your total commission from all AMCs combined is your aggregate turnover for this purpose. If you cross Rs 20 lakh in a financial year, you must register before making further supplies.

COMPOSITION SCHEME: Not available. Composition scheme is only for goods suppliers and certain restaurant services. Service providers, including mutual fund distributors, cannot opt for composition.

GST RATE: 18% on commission income. SAC Code 997164 (Portfolio Management Services and Mutual Fund Administration).

ITC: Once registered, you can claim ITC on GST paid for business inputs - office expenses, internet, software subscripttions, professional fees. This partially offsets the GST cost.

IMPORTANT: Even if you are below the threshold, voluntary GST registration can be beneficial if you incur significant GST on business inputs, as you can then claim ITC.

For a detailed breakdown covering the threshold calculation, SAC codes, ITC eligibility, and return filing obligations for mutual fund distributors, see this [GST guide for mutual fund distributors India 2026](https://taxgarden.in/blog/gst-for-mutual-fund-distributors-india-2026).