| Question And Answer | |
|---|---|
| Subject: | APPLICABILITY OF GST |
| Category: | GST |
| Querist: | CA ASHOK KUMAR GOYAL |
| Answered by: | Advocate C.B.Thakar |
| Tags: | Director, GST Registration, located in different State, registration |
| Date: | May 4, 2022 |
Mr. A , who lives in Gurgaon ,is a director in the company located at Gurgaon. A part from receiving Director remuneration he also receives sales commission. from the same company in which he is a director. Further, he also has GST registration in other state , where he files NIL return.
Is Sales Commission received from the company will attract GST from the single amount he gets , as he is having GSTIN in the other state ?
For purpose of registration, section 22(1) provides as under:-
“(1) Every supplier shall be liable to be registered under this Act in the State or Union territory,
other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:
Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.”
The registration liability arises based on Aggregate Turnover. The term ‘Aggregate Turnover’ is defined in section 2(6) as under:-
“(6) “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;”
The aggregate turnover is based on All India basis.
Since the director is registered in one of the States in India, it suggests that there is exceeding of aggregate turnover. Once it is so, the director is required to be registered in Haryana also if making taxable supply from such State.