| Question And Answer | |
|---|---|
| Subject: | Applicability of GST |
| Category: | GST |
| Querist: | Sethiya |
| Answered by: | Advocate C.B.Thakar |
| Tags: | commission to Insurance Agent, GST |
| Date: | May 29, 2022 |
Assessed is advisor at Max Life Insurance and during the financial year 2021-22 assessee received gross commission from Max on the business carried out by assessee was Rd. 21.25 lakhs? What are requirements under GST Act. Pl. Guide
Commission to Insurance agent is covered under RCM as per notification no.13/2017 Central Tax (Rate) dated 28.6.2017. Therefore, agent is not required to obtain registration and other formalities under GST not applicable to agent.
However, if the relationship is not as an agent, then the assessee will be liable for GST registration as gross receipts exceed 20 lakhs.
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