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GST for Distributors.No. of comments:40 Deepak K Khurana, Pulgaon, 15783 On 18-Jun-2017

The services provided by Mutual Fund agent/distributor to a Mutual Fund or Asset Management Commission, are being made taxable under forward charge with effect from April 1, 2016. The Small scale exemption i.e. threshold turnover of Rs 10 lakh per year is available to the Mutual Fund agent/distributor, subject to fulfillment of other conditions prescribed, These is regarding Service tax. What conditions will be applicable regarding GST & when we will have to Register for GST.

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Comments Posted
virendra kumar arya ARN NO :6001 gangapur city, 29 Sep 2017

My annual income is less than 20L limit. I have registered GSTIN and receiving commission from AMCs without GST deduction. Also receiving invoices from AMCs. There is no clear instruction from AMCs about what to do with these invoices. Also ther is no clarity on whether the GST amount shown on invoices to be remitted to Govt. eventhough annual income limit is less than 20L. If it so, then there is no point in registering GSTIN as there is no scope in input tax deduction. Different people giving different versions. For other industries Govt. notifying on newspappers by way of FAQ, still there is no FAQ for MF industry.

M Barani Kumar ARN NO :ARN-52571 Vellore, 23 Sep 2017

My annual income is less than 20L limit. I have registered GSTIN and receiving commission from AMCs without GST deduction. Also receiving invoices from AMCs. There is no clear instruction from AMCs about what to do with these invoices. Also ther is no clarity on whether the GST amount shown on invoices to be remitted to Govt. eventhough annual income limit is less than 20L. If it so, then there is no point in registering GSTIN as there is no scope in input tax deduction. Different people giving different versions. For other industries Govt. notifying on newspappers by way of FAQ, still there is no FAQ for MF industry.

K A PATWARDHAN ARN NO :64228 mumbai, 20 Sep 2017

i am charging advisery charges to my client,so under which head it is aplicable for gst.

Imran Hasan khan ARN NO :39397 Lucknow, 12 Sep 2017

what is Chennel Code..?

Avinash K ARN NO :ARN-92113 Satara, 11 Sep 2017

I fully support the one who has started this topic on this forum. I would like to see this put into action rather than just commenting on this forum. Sorry if this sounds rude to anyone. Dear all, please tell us what plan should be executed so that IFAs in India get justice for this mindless GST policy. Currently all I can say is that Mr. Pravin Dhuri, a hard working IFA like all of us had started a petition so that we all get justice. I strongly urge you all to please sign this petition. This will take just 1 minute of your time. But this 1 minute of every IFA will do justice with all IFAs. The link to sign this petition is: https://www.change.org/p/amfi-ministry-of-finance-sebi-appeal-against-wrongful-unjustified-deduction-of-gst-from-mutual-fund-advisor-commission There is nothing as simple as signing this petiition. Its the most important duty for an IFA at this hour. Thank you.

akhilesh upadhyay ARN NO :105040 RANCHI, 04 Sep 2017

plz show the way.i am a very small distributor.getting less than twenty lakh per year.what should i do.i dont have the idea of gst at all.should i pay the said 18 % or i am exempted .

Ananth Padiyar ARN NO :ARN-126417 Mumbai, 01 Sep 2017

Can anyone tell me the GST Channel Code for Mutual Fund Distributor?

Prasad ARN NO :44107 Pondicherry, 06 Aug 2017

Channel Friendly AMCs needed One of my principal company to prove that they are channel friendly has done the following steps under GST 1. They have taken a branch GST registration in each state including Pondicherry 2. They have advised me to raise invoice for the commission as below Example Commission let say is Rs 10,000 CGST/SGST 9% each Rs 1,800 My commission is intact and there is no reverse charging involved in this. Hope AMCs will follow this good practice and bail out IFAs from 18% loss in their hard earned commission. AMCs should not deduct 18% from IFA''s commission and claim that amount as input credit against the GST payable by AMC.

Lakshya wealth services ARN NO :111483 delhi, 05 Aug 2017

it is obvious that, GST have made the distributors path so difficult as one side SEBI is segrigating advisory from distribution and on other side distributiors crying commission would be penalised for compulsory tax burden of 18% specially for those falls under the IGST.

suhas kokadwar ARN NO :56071 parbhani, 04 Aug 2017

sir, I am mutual fund distributors working since last 8 year. My all AMC commission recived last year Rs 650000. So under GST registration me compalsary or not. I not register under GST AMC less 18% commission or register not less 18 %. As per low above 20 lac commission on GST. How monthly gst return to be filed and pay tax ?

girish prasad ARN NO :54441 kalyan, 16 Jul 2017

now we have to pay gst 18%.previously it was zero due to 60000 per year income .Now from this sixty thousand we have to pay around 10800 is to be given to govt. it is wrong. highest percent of rise in tax due to GST is on person like us and that is 18 percent. to whom we should complain.

Vishvas ARN NO :104545 Mumbai, 16 Jul 2017

Businesses with turnover of up to Rs20 lakh (Rs 10 lakh in special category states) are exempt from GST. “If one is carrying out any business and has an annual aggregate turnover in the preceding financial year exceeding Rs20 lakh, you need to register in all the states/union territories from where you are making taxable supplies,” it said. No need to register for GST, If turnover below 20Lac.

venkateswaran ARN NO :26477 chennai, 15 Jul 2017

Mutual fund distributor forced investor to come out from the amcs. (Those don*t need commission), to avoid monthly return charges of rs.1500/per month. (Only small IFA).yearly it will come around 18 to 20 thousands.Iam a ifa doing only small commission, which will not meet the filing charges. No use of being as a agent. Investor can go for corporate distributor for their need. I don* t know nothing about gst. NO AGENCY NO COMMISSION NO SERVICE TAX.CAN CANCELL THE REGISTRATION..CAN ABLE TO DO SOME OTHER WORK FOR THEIR BREAD.

venkateswaran ARN NO :26477 chennai, 15 Jul 2017

How mnthly gst return to be filed and how?

venkateswaran ARN NO :26477 chennai, 15 Jul 2017

Sir, Registered as pper amfi.instruction in gst.My income from mutual fund commission below Twenty Thousand per year.Ihope no service tax on commission. IS I have to monthly return . In what format and when and how to do it.pl.inform. Venkateswaran

PRAVAR NIGAM ARN NO :67232 KANPUR, 08 Jul 2017

Dear Every IFA has to register GST there is no exception to anybody. As soon as possible register for GST. https://reg.gst.gov.in/registration/ is the site for that.

Bikram Bhattacharjee ARN NO :114190 KOLKATA, 07 Jul 2017

How do i start the process of registration for GST? How do i get my GSTIN no. and where do I find the image to upload in the amfi site?

N Jayakumar ARN NO :103649 Salem, 04 Jul 2017

Since GST registration is mandatory for all mutual fund distributors, AMC can conduct an awareness session on "How to register for GST".

RH ARN NO :7685 Chandigarh, 03 Jul 2017

Compulsory registration for those outside Maharashtra. No limit of 20L on inter-state services. Nothing AMFI can do about it - GST rules mandate this. For Maharashtra distributors, if gross services (ALL including insurance commission etc.) above 20L, registration compulsory. If below 20L - registration optional but GST deduction@18% under Reverse charge by AMC. So, every distributor ( including Maharashtra-based ) to pay GST from Re1/-

Deepak Khurana ARN NO :15783 Pulgaon, 01 Jul 2017

Confusion! Confusion! & only Confusion! 1) If my threshold MF income is below & 20 Lakhs & If I doesn''t register for GST the GST will be deducted under reverse charge mechanism and the net amount will be paid. AMCs shall remit the GST deducted to Government of India. 2) But If I register for GST, According to GST rules GST is payable from Re.1/-, I cant file zero return upto 20Lakhs. 3) The only thing comes out that I will have to pay GST anyway @18%. 4) Then Why I should register for GST when already it will be deducted under RCM.

ritesh tiwari ARN NO :52739 mandsaur, 01 Jul 2017

dear friends, plz note every distributor has to pay gst whether he is in maharashtra or any other state, gst is applicable from rs 1 brokerage. exemption is for not filing return if you earn rs 20 lakh in a year or less. there is no "line" stating that exemption is on brokerage.

saradamma vadla ARN NO :106604 hyderabad, 26 Jun 2017

Sir. I request that GST registration for the IFAs whose brokerage in a financial year is less than the earlier exempted limit of Rs 10.00 lakhs should be exempted from registration. Moreover filing monthly returns also for those IFAs who are getting brokerage of below Rs 1.00 to Rs 2.00 lakhs in a financial year. Otherwise Big impact to the MF industry and to the advisory services to the clients in future. Hence this is to be considered for the healthy growth.

Stanislaus Dsouza ARN NO :40706 Shirva (Udupi), 23 Jun 2017

I agree with the comment posted by Mr Keshav, Bangalore. All IFAs whose commission is around 10-12 lakh, no need to register GST. Let the AMCs deduct the GST through reverse charge mechanism. It is not easy for IFAs to file GST every month specially who reside in the rural areas.

keshav ARN NO :82562 bangalore, 22 Jun 2017

I feel that there is no need to register since u have not crossed the threshold limit. its better to take a hit at the brokerage than that of taking a headache of filing as GST will not give any leverage and has to be paid from re.1 the input tax advantage seem less and also there is a terrible filing penalties to be suffered incase of any irregularities I am currently migrated from ST to GST

RELEVANCE FINANCIAL SERVICES ARN NO :116819 AGARTALA, 22 Jun 2017

I have Proprietorship firm having income from mutual fund commission only. Our income is less than 10 Lakh per annul and we are not registered under service tax. What are the implications of GST on us and is it mandatory to registered GST?

Ganesh Kumar Gupta ARN NO :43630 Golaghat Assam, 21 Jun 2017

Now it is clear. IFA based in Maharashtra going to get a thresh-hold limit of Rs. 20 Lakh but IFA based in other states are not going to get any thresh-hold limit. This is a big injustice to all the states except Maharashtra.

Pyramid Wealth Management Pvt Ltd ARN NO :ARN-92829 AHMEDABAD, 20 Jun 2017

Ours is Pvt. Ltd. Company having income from mutual fund commission only. Our income is less than 10 Lakh per annul and we are not registered under service tax. What are the implications of GST on us.

ANSHUMAN GARG ARN NO :8876 DELHI, 20 Jun 2017

Ours is Pvt. Ltd. Company having income from mutual fund commission only. Our income is less than 10 Lakh per annul and we are not registered under service tax. What are the implications of GST on us.

virendrakumar pannalal misra ARN NO :110791 mumbai, 19 Jun 2017

my commission is less than 10 lakh per annum whether i have to register for GST

Sivaramakrishnan ARN NO :112337 Chennai, 19 Jun 2017

Dear Sir, Would like to understand the views of our fellow Fund Advisors on the impact of GST. Regards, Siva

sanjay doshi ARN NO :4644 mumbai, 19 Jun 2017

AMFI should take a legal opinion on the applicability of GST and then circulate to all the ARN holders. There is lots of confusion in this matter and we should not be caught on the wrong foot.

Rakesh Kumar swami ARN NO :119704 Jaipur , 19 Jun 2017

Gst Kar

lovey mehra ARN NO :32629 New Delhi, 19 Jun 2017

Under GST the exemption of 20lacs to small entrepreneurs are available only for Intra state sales for which the question of place of receipt and place of supply of service takes prominence. Our services do not qualify under the negative list of Intra State Services as per para 8 of IGST. As per para 2(14)(b) and (c) the location of fixed establishment of service shall be considered as location of recipient of service who may be registered elsewhere .In our case it is the local offices of AMCs/MFs / Registrar for Mutual fund services in the States / Union Territories which qualify as “fixed establishment”as per para 2(7) of IGST and Chapter 1 para2(50) of CGST. So as per my understanding the Place of Recipient of services qualifies is within the STATES/ UNION TERRITORIES. Even para 2 (85) of CGST qualifies the place as business as place of location and operation of agent as defined by para 2(5) of CGST. The place of supplier of service i.e the distributor is defined by para 8 / 12(12) of IGST and para 2 (71)( c ) and (d) define the place of supply of service as per my understanding as the registered address of the distributor SO as both receipient and supplier are in one state AMC should give us benefit of 20 lac exemption and not charge 18% reverse charge GST form those who are below 20lac

Rajesh Badami ARN NO :44480 HOSPET, 19 Jun 2017

The Service provided by Mutual Fund Distributors to a Mutual Fund or AMC under GST Regime: 1. GST is taxable under Forward Charge Mechanism (similar to existing system followed from April 1, 2016) 2. Exemption to small distributors upto total turnover of Rs.20 Lakhs per year ( total turnover includes mutual fund commission, insurance commission, Rental Income and business turnover if any, Under Same PAN). 3. GST Rate is 18% for Mutual fund distributor with ITC (input tax credit) Regards, Rajesh Badami Ph: 8453030030

PS NARAYANAN ARN NO :26382 MUMBAI, 19 Jun 2017

FROM WHAT I UNDERSTAND THE THRESHOLD LIMIT IS NOW 20LACS. MEANING IF YOUR TOTAL INCOME FROM ALL SOURCES INCLUDING MF DOES NOT EXCEED 20LACS, YOU NEED NOT REGISTER AND PAY GST. HOWEVER IF YOU FEEL YOU MAY ACHIEVE ANYTIME DURING THE COURSE OF THIS FINANCIAL YEAR,BETTER TO GET REGISTERED.

Suhas Wadekar ARN NO :71362 pune, 19 Jun 2017

How distributor will pay GST and any exemption up to any summary ?

M. Karunanidhi ARN NO :9845 Coimbatore, 19 Jun 2017

We also need the clarity on whether this 20 lakh ceiling is only on MF income or all other financial product distribution brokerage like life insurance, non life insurance and so on.

DINESH NAGPAUL ARN NO :ARN-21608 KARNAL, 19 Jun 2017

In my opinion, companies would deduct 18% tax if a person would not be registered under GST. And if a person is register under GST he has to do all the formalities of filing 37 returns in a year. In my opinion it is also a misconception among certain IFAs that composite scheme would be available for IFAs in which we would not to perform such formalities and only quarterly return will suffice otherwise, but composite scheme is only for traders, manufacturers and for restaurants owners only. Hence an IFA who will be registered and whose entire commission would not go above 20 lacs in a year would not bear burden of GST, but he/she has to bear burden of filing returns. And the person who is not registered under GST, he will get commission from companies after deducting 18% as for reverse charge mechanism, but he has not to face any formalities of filing returns. In this way the menace will be for all of us !

urvish ARN NO :111137 mumbai, 19 Jun 2017

need to know in detail on the above subject

Mahesh Mirpuri ARN NO :106655 Chennai, 19 Jun 2017

If one is earning > 20 Lakhs, one has to register compulsorily No clarity regarding those under 20Lakhs I understand that though registration may not be required, AMCs will deduct 18% under reverse charge mechanism

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