Does my business need GST registration?

Dear Sir,

Hope you are doing well !!

As per my understanding, your services fall under the category of intermediary services, place of provision of services will be place of service provider (I.e. India)

-GST registration is mandatory for intermediary services without any threshold limit.

-Intermediary generally charge commission against the services provided by them.

-The commission income so earned is subjected to GST@18% and all the provisions of GST law is applicable accordingly.

- You need to issue an invoice to the company. If they are paying you a fixed amount and not paying GST in addition, you simply need to do reverse calculation of GST according to the amount so received.

- Basically GST is a collection from customer and not from own pocket.It is upto you how to collect it from customer either by increasing the commission amount or charging GST separately on the current commission.

-In case there is no commission for a particular period, you will have to file NIL returns. GST shall have to be paid for the month in which invoice is made OR payment is received- whichever is earlier.

If you need any further assistance, please let me know.

Hello Sir,

GST would be applicable. But how it has to be done depends on:

1. How the invoicing is done? From the dealer and to the ultimate customer.
2. How are you receiving and making the payments? Is it in foreign exchange?

Hi

You don't need a GST registration until your turnover reaches 40 lacs. 

Further, you won't have any GST liabilities.

Once registered, you will have to file returns mandatorily. And these shall not be nil returns. Transaction details have to be reported.

We may discuss the issues in detail over a call.

If you are going to first buy from amazon and then sell it to US customer then you wont require any GST registration as all the business is being conducted in US, so its very important to have a look at how invoicing is done.

Say for example if someone returns the books, so will they return it to you or to amazon?

If you are just acting as a mediator then you are a commission agent working at fix profit and in that case you need to register under GST and consider that 18% as your cost since you cant recover it from your client.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

In the said scenario, there would be no GST liability untill your turnover cross the limit of Rs 40 lakh.

After crossing the limit, you will be required to get the GST registration and mandatory file returns with all reporting requirements.

- Where you will store the purchased goods from Amazon?.  It will be treated as export of goods and you need to obtain GST registration after the threshold of Rs.40 lacs.

Dear Sir,

It is advisable to take a phone consultation for complete understanding.

Hello,

Well the GST law is not very much clear about this scenario. Where one interpretation claims it to be an inter-state supply and therefore making you liable for compulsory registration and the other one(Advance ruling from The Authority of Advance Ruling, Kerala) claiming it to be not taxable.

As per my understanding, it would be covered as inter-state supply and you would be liable for compulsory GST registration.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Dear Sir,

You will not be required to take a GST registration untill your turnover crosses the limit of INR 40 lakh.

However, it is better to get the details of invoicing method.

Please note that the issue is very clear. There are no contrary views.

Compulsory registration is required for persons making inter state taxable supplies. However in your case, it is not a taxable supply at all.