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Sec 24- Compulsory Registration

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Amandeep Singh

20 Points Posted on 10 June 2020

As per sec 24(vii), A agent is required to get compulsory registration if principal is taxable person.

The qns is if he does'nt get himself registered under sec 24 so weather the principal is liable to pay tax on RCM basis on the commission which he is paying to its agent for the part of service rendered by him for the principal as agent is not charging any tax on invoice.

Replies (4)

Quick Summary

This discussion clarifies the compulsory GST registration requirements for agents under Section 24 of the CGST Act, particularly when their principal is a taxable person. It addresses whether a principal is liable for tax under Reverse Charge Mechanism (RCM) on commissions paid to an unregistered agent. The consensus is that the agent is solely responsible for compulsory registration, and RCM is not applicable in this scenario, especially since Section 9(4) has been removed.

Pankaj Rawat

GST Practitioner

20 Points Posted on 11 June 2020

No...... as per Section 24 of CGST Act liability to obtain Registration is of agent & Moreover the RCm is not applicable on inward supply from URD (Section 9(4) has been scrapped)