Question

Q. gst on comission income

Answer 1

Commission income is considered a supply of services under GST. Therefore, if you are earning commission income in the course or furtherance of business, GST is applicable on such income. The rate of GST on commission income depends on the specific service being provided and can vary based on the GST rate notifications issued by the government.

For a person earning commission income, it's crucial to:

Register under GST: If your turnover exceeds the threshold limit for registration as per Section 22 of the CGST Act, 2017, which is Rs. 20 lakhs for services (Rs. 10 lakhs for special category states), you are required to register under GST.

Charge GST: Once registered, you need to charge GST on the commission income at the applicable rate and issue a tax invoice as per Section 31 of the CGST Act, 2017.

File Returns: You are also required to file periodic GST returns and pay the collected GST to the government as per the provisions of the CGST Act.

Regards, CA. Praveen Sharma

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