This discussion clarifies the mandatory GST registration requirements for commission agents. Registration is compulsory if the agent physically handles or supplies goods on behalf of a principal. However, agents who merely facilitate transactions between a principal and a third party, earning commission for their services, may benefit from the standard turnover threshold limits for registration.
There are two type of Agent who earn commission on their services. The Agent who are supplying goods on behalf of Principal to third person are liable to obtain mandatory Registration in term of Section 24 of CGST Act. The agent who are facilitating the supply of goods or services between principal & third person & thus rendering services to principal & receiving consideration in form of Commission can enjoy the threshold limit prescribed in section 22 of CGST ( 20 lacs for services & 40 Lacs for Goods) Act .to obtain Registration.