Summary for GST Applicability to Sub Brokers & Authorised Persons: (as on 04-07-2017)
Hi Friends and All Concerned,
Hope you find the below helpful. The points below have been made in consultation with Brokers, Stock brokers, Chartered Accountants, Lawyers, Tax Consultants and Other learned people.
Please note the GST rules and awareness is/are, changing/updated practically every day. In-case you feel that certain facts are wrong or not correct, please feel free to ping at the numbers mentioned below. ** Please consult with your Chartered Accountants, Lawyers, Main brokers **
• GST registration is not mandatory for every Sub Brokers & Authorised Persons.
• Sub Brokers & Authorised Persons need to register for GST only if their annual turnover is above 20 lakhs (or 10 lakhs as in some states)
• Annual Turnover of Rs 20 Lakhs means , the commission that you receive from your broker. YOUR NETT FINAL PAYOUT. (Eg. If in a particular month you make a total brokerage of Rs 1,00,000/- and your sharing with your main broker is 50 : 50, then you will get commission of Rs 50,000/- This 50,000/- is your turnover.
• If someone does other business eg. MF, Insurance, Other financial products, or any other products under the same name and the total commission for all the products is more than Rs 20,00,000/- then YOU WILL HAVE TO REGISTER FOR GST.
• If you register for GST, you will have to make a invoice in the name of your broker at the end of every month and charge GST. . (Eg. If in a particular month you make a total brokerage of Rs 1,00,000/- and your sharing with your main broker is 50 : 50, then you will get commission of Rs 50,000/-
You will raise your broker the following bill. (as per govt. format)
Bill / Invoice To Main Broker:
Total Payout earned or commision 50,000.00
Add CGST @ 9 % 4,500.00
Add SGST @ 9 % 4,500.00
BROKER WILL PAY YOU ----> 59,000.00
This 9000/- you will have to deposit to the government account
if you have any input credit you can adjust the same
Please note that there will be no change in dealing with your customers. There is no charging the customers.
Hope this is helpful. Please ping on < email@example.com > or +91 9831074224 if you have any additional information or update.