GST Filing & Registration Service for Commission Agents

The GST has special rules for those who work as agents. To start, agents must register for GST, no matter how much money they make in a year. So, GST Registration is an important part of running a business for agents. In this article, we’ll talk in depth about how Commission Agents can register for GST.

Who is an Agent under the GST Act?

Under the GST Act, an agent is anyone who trades in supplying or receiving goods or services or both on behalf of someone else. This could be a factor, broker, commission agent, agent, auctioneer, or any other commercial agency.

A “commission agent” is, in the simplest terms, someone who works for a fee on behalf of a person to help them buy and sell products or give and get services. Here are the most important kinds of agents.

A person who works on commission and gets paid when two or more people do business together. He has nothing to do with it. For instance, a real estate agent.
In the same way, a pure agent is a person who makes a payment on behalf of someone else and only gets paid for that payment. Stock Brokers are a good example.

Is GST Registration for commission Agents mandatory?

Section 24(vii) of the CGST Act says that a Commission Agent must get Compulsory Registration. This is true no matter how much money they make. So, the Rs.20 lakh limit in section 22(1) of the CGST Act doesn’t have to apply to an Agent. So, he or she is required to get GST Registration.

The commissions are charged at a rate of 18% GST. GST also applies if a person who is registered for GST gets a commission for a transaction that isn’t usually part of his business.

Mandatory Compliances after getting GST Registration for Commission Agents

The following GST Returns must be filed by a GST Registered broker and a commission agent.

GSTR-3B – Monthly summary return.
GSTR-1 – Return for reporting outward supplies.
GSTR-9 – Annual return.
GSTR-5 and GSTR-5A – Non-resident foreign taxpayers.

Furthermore, all Commission Agents are required to maintain accounts displaying the following-

The manager’s or client’s permission to send and receive goods on his behalf.
How much and how much it cost to get goods or services for a client.
The client is given a lot of information about their accounts.
Taxes that were paid for the client when they bought goods or services.

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Tag : GST Filing, GST Registration, TDS Filing