Yes, if your brokerage commission exceeds INR 20lacs, you would be liable to pay GST.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
GST compliance for Cloth Commission Agent
Sir I am currently working as commission agent of various textile goods in state of BIHAR, city Muzaffarpur. In this, out of state supplier bills directly to Customer (B2B) on our assurance and mentions our name in Agent column of bill. At year end, supplier computes our agent commission at a fix rate as decided earlier and credit the amount in our account. Will I be liable for GST?
Asked 8 years ago in GST
Thank you for your prompt response sir. Actually I talked to a CA today, and he said that brokerage is service provided by a 'Intermediary', and he should make data of all the bills in a month and raise a bill to supplier with 18% GST rate(as mentioned in GST documents) for brokerage payment as goods are brought in from Out state. Please discuss this also. However, yesterday while talking to a most senior and respected CA of our city, he also suggested me not to take GST number as my brokerage is 15 lakh approx a year. But, problem is, in last FY 2016-17, I also did trading of around 40lakh in my brokerage current account. What should I do?
Asked 8 years ago
Hi,
If your turnover is more than 20 lacs, you are liable to take Registration.
If you take Registration, what you said is correct.
You should make data of all the bills in a month and raise a bill to supplier with 18% GST rate(as mentioned in GST documents) for brokerage payment.
Should I go for Composite scheme or Regular scheme? I am not aiming for trading from this year and neither have done any trading after 01/04/2017. Or should I not apply for GST and let it go as things were till last year. Also, if I come in GST and charge 18% GST on my brokerage, my services will become costly by 18% to supplier, he might move to other agent who is not opting GST and getting commission in name of 2-3 family members, all below 20 lakhs limit? I am planning not to take GST registration (and ignore last year commission income of around 11 lakh + trading of goods of around 40lakh). What is your view? Will it be a problem or can I go with my idea?
Asked 8 years ago
Hi,
As already mentioned, in case your turnover is less than 20 lacs, you don't need to take Registration.
Further, please note that your services will not become costlier (if your clients are registered in GST) even if you take Registration.
Please feel free to call in case you want to discuss this in detail.
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Hello,
Your previous years income has nothing to do with GST, but you may receive a notice from Service Tax/ Sales Tax.
For the current year you will not be required to take GST registration till the time you cross the Rs.20 Lacs threshold.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Hello Sir,
You cannot go for composition scheme as it is not applicable for commission agents. You can not apply for GST if you feel that your commission income will not cross Rs.20 Lacs in the current financial year.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LLB
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