{"id":743,"date":"2023-12-30T06:38:33","date_gmt":"2023-12-30T06:38:33","guid":{"rendered":"https:\/\/caalokkumar.com\/my-writing\/?p=743"},"modified":"2024-01-24T11:54:26","modified_gmt":"2024-01-24T11:54:26","slug":"query-is-gst-applicable-on-commission-income-in-india","status":"publish","type":"post","link":"https:\/\/caalokkumar.com\/my-writing\/query-is-gst-applicable-on-commission-income-in-india\/","title":{"rendered":"Query – Is GST applicable on commission income in India?\u00a0"},"content":{"rendered":"\n

Ans – Yes, in India, Goods and Services Tax (GST) is applicable on commission income. As per the GST law, any form of supply of services, including services provided through commission, is subject to GST. Here are some key points to consider:<\/p>\n\n\n\n

1. GST Registration Threshold: <\/a>If your annual turnover exceeds Rs 20 lakhs (Rs 10 lakhs for special category states), you are required to register for GST. This threshold applies to the aggregate turnover, which includes commission income.<\/p>\n\n\n\n

2. GST Rate on Commission Income:<\/a> The GST rate on commission income varies based on the nature of services provided. GST rate on Commission Income is 18%. If service recipient is outside state, IGST (Integrated GST) shall be charged @18% and if service recipient is located within the state, CGST & SGST (Central GST & State GST) shall be charged @9% each aggregating 18% on to total Commision income.<\/p>\n\n\n\n

3. GST based Tax Invoice Requirements:<\/a> If you are registered under GST, you need to issue a GST-compliant invoice for your commission services, detailing the GST amount charged. Tax Invoice must contain GST number, HSN code, service recipient name, address and GST number.\u00a0<\/p>\n\n\n\n

4. Filing of GST Returns:<\/a> Registered individuals or entities under GST are required to file periodic returns, declaring their income from services, including commission, and the corresponding GST collected. Generally two GST returns are important and ned to be filed by all GST registered person and these are GSTR1 & GSTR3B. Bothe the GST returns are required to filed on Monthly or quarterly basis, depending on turnover.<\/p>\n\n\n\n

5. GST Input Tax Credit (ITC)<\/a>: If you are registered under GST, you can claim Input Tax Credit (ITC) on the GST paid on goods and services used for your business, which can offset the GST liability on your commission income.<\/p>\n\n\n\n

6. GST Reverse Charge Mechanism (RCM):<\/a> In certain cases, where services are provided by an unregistered person to a registered person, the liability to pay GST may fall under the Reverse Charge Mechanism (RCM). This means the recipient of the services (not the provider) is liable to pay GST.<\/p>\n\n\n

\n
\"The
The Growth of GST Collection in June 2023<\/figcaption><\/figure>\n<\/div>\n\n\n

CA in Dwarka New Delhi <\/a> TAX Consultant in Dwarka New Delhi<\/a> GST Practitioner in Dwarka New Delhi<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Query – Is GST applicable on commission income in India?\u00a0<\/p>\n","protected":false},"author":1,"featured_media":532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[378,111,12,309,379],"tags":[38,380,383,382,23,381,37],"class_list":["post-743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst-on-commision","category-central-board-of-indirect-taxes-customs","category-gst","category-gst-assessment","category-gst-invoice","tag-ca-alok-kumar","tag-gst-on-commission-income","tag-gst-rate","tag-gst-rcm","tag-gst-registration","tag-rcm","tag-taxplanning"],"_links":{"self":[{"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/posts\/743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/comments?post=743"}],"version-history":[{"count":1,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/posts\/743\/revisions"}],"predecessor-version":[{"id":744,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/posts\/743\/revisions\/744"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/media\/532"}],"wp:attachment":[{"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/media?parent=743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/categories?post=743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/tags?post=743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}