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Treshold for exemption in gst for commission agents

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Sunil

Trader

2253 Points Posted on 13 April 2017

Currently those doing commission business on sale of goods below Rs.10.00 lakhs per annum are exempt from Service Tax and not taxed under State VAT or CST laws.

With GST is the exemption decided of Rs.20.00 lakhs applicable on this business?

If turnover is less than Rs.10 lakhs in the state where assessee is located ut a fraction of the turnover (approx 2 lakhs) is commission received from a company located outside the state, does registration and payment of GST still have to be done due to Interstate supply of commission service as intermediary for sale of goods?

Replies (1)

Hitesh

Service

24 Points Posted on 20 June 2017

Commission agent or broker has to comulsorily register irrespective of threshold limit

Agent defined as under:-

Section 2 (5) “agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another;

Section 24 Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,––

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(vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;