Why compulsory GST registration for small IFA?No. of comments:89 Sunita Jain, New Delhi, 5314 On 21-Jul-2017
It appears that registration is compulsory for IFAs irrespective of their turnover. According to newspaper reports less than 1000 out of 86000 registered IFAs have a turnover of over Rs.20 lakhs. In general, the threshold limit is Rs.20 lakhs in case of services. Would it not be more efficient to have the reverse charge mechanism apply so that AMC/Mutual Fund deducts the GST before disbursing the commission/brokerage and the IFA need not register under GST, ifhe/she so desires.. The government gets its revenue and the IFA is spared the agony and trouble of filing returns, depositing taxes etc. This was the case with Service tax where service tax used to be deducted at source by the brokerage/commission paying mutual fund. IFAs should send a representation to the authorities concerned. What is your opinion?