Is GST applicable on commission received by daily collection agents of credit co-operative societies/banks?
Yes GST is applicable on all commissions received even by daily bank collection agents, insurance agents, broker's, Security services, manpower suppliers etc…. BUT it falls under RCM ( Reverse Charge Mechanism). Under RCM, the receiver of the SERVICES is liable to pay GST and take credit on behalf of the commission agents, manpower suppliers etc. However, on reaching the TURNOVER of 9 lakhs in Northeastern Hill and specific States, or 18 lakhs in REST OF INDIA, you have to REGISTER on the GSTN portal. For all other categories of suppliers and services GST is applicable from reaching the TURNOVER of 10 lakhs in Northeastern Hill and specific States or 20 lakhs in REST OF INDIA. But for commission agents and manpower suppliers, it will continue to be under RCM, even if the TURNOVER reaches above this or any limits.
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