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SIR I IS TRUE THAT GST IS IMPLEMENTED BUT GOVT. HAVE TO THIN K THAT SMALL DISTRIBUTER HAVE TO SPARE FROM GST EVERY MONTH U HAVE TO FILE GST AND EXTRA COST FILE CHARGES

It is true that small distributors like me are facing problem due to introduction of GST.Last year my brokerage was about 1.5 lakhs in a year.So for such small brokerage GST will create tremendous problem. Because only registration of GST will not solve the problem.You have to submit the quarterly return of GST. How Govt. is excepting such completed procedure to be followed from small distributors whose tern over is less than 20 Lakhs in a year. S.K.Sahasrabudhe

Its a sheer skin-saving attitude by AMCs. In every sector or industry, its the service recipient, who has to bear the cost of GST, not the service provider. AMCs are the service recipient here, while IFAs are the service provider. Thus AMCs has to bear the cost of GST and must not deduct the same from the Gross Commission payable to the IFA. While, I agree this might effect the TER of the funds, AMCs somehow has to lookout to lower their internal costs somewhere. They can control their many unnecessary wasteful costs of lavishly thrown out meetings at 4/5 star hotels and wasteful promotional materials. They must understand bulk of their business comes from IFAs who earn less than Rs.10 lakhs and it is of their no interest to make them suffer. New IFAs will further get discouraged by this attitude.

DEAR SIR IAM SMALLMUTUAL FUND DISTRIBUTOR THE FINANCE MINHSTERHAS18% GST ON DISTRIBUTOR IREQUSET YOU THAT YOU WILLHELP TO DISTRIBUTOR ON COMPOSTION SCHEME AND SHOULD BE TAX1 % AND2% AND 5% UNDER20LACS PLEASEDO THE NEEDFULL HELP FOR SMALL DISTRIBUTOR

GST Liability on Brokerage paid to Distributors should be borne by AMCs Important Points : 1. GST Liability is on Buyer / Receiver of Good & Services and not on Supplier. 2. GST Considers Distributors as Supplier of Service. 3. GST Considers AMCs as Receiver of Service. 4. For Distributor, its Outward Supply. 5. For AMCs, its inward supply. GST Paid on inward supply is eligible for Input Tax Credit (ITC) provided its from registered supplier. 6. Distributor will raise & issue a Tax Invoice containing Value of Supply + GST , to the receiver of Service. 7. Receiver of service (AMC) will honor the Tax Invoice and will claim Input Tax Credit (ITC) for the GST Paid. 8. Distirbutors will file return GSTR-1 , its a sales return / Outward Supply return. 9. AMCs will file return GSTR-2, which is inward supply return. 10. AMCs can set-off GST Paid on Commission against GST Collected on Fund Management Charge. 11. Anyhow AMCs will claim ITC for the GST paid but they are adjusting in brokerage itself. If INR.100/- is brokerage then Tax Invoice will be 100 + 18 = 118. But one AMC is asking us to raise Tax Invoice as 84.75+15.25 = 100.

how to register GST.

I entirely agree with you. Finance Minister on several occasion on media has said that those who have turnover upto 20 lakh need not have to get registered under G S T. On the other hand all the distributors are forced to register under Composit scheme means pay tax even you don''t have turnover/ income of 20 lakh and above. Govt is not treating us at par with those who are doing local business. This is a clear cut case of inequality. Even our constitution doesnot permit inequality. Sorry Finance Minister, you are doing injustice with Distributors

I also agree that GST shoild not implemented on our commission as we are paying income tax as per slab then why we pay double tax, also insurance and other products commission is without GST

Dear All I have already tweeted this article @arunjaitley, kindly follow me @blijay and retweet tge same to arun jaitly abd the p.m. so that our voice can reach to the policymakers.

First of all please let me understand how GST being imposed on on our commission. How our commission can be treated as turnover. And I feel if our commission is treated as turnover as we are providing service then all salaried person should come under GST as everybody is rendering service to somebody. I earn around 3.5 lacs per annum as brokerage and if I am to pay 18% GST from that, only 2.87 lace left for me which I feel is thin amount for livelihood. So I request our govt. to reconsider our case and do the needful do that we can service with our family.

I AGREE WITH THIS REQUEST .IF A DISTRIBUTOR PREVIOSLY GOT RS .5 LAKH ,HE HAVE TO PAY ONLY INCONE TAX. AS PER GST HE HAVE TO PAY 900000/-AGAINST GST . ALSO HE HAVE TO PAY INCOME TAX . IT IS OUR REQUEST GTC COUNCLE SHOULD RE CONSIDER IT ,ONLY A SUITABLE GST SHOULD CHARGE .THANKS

I agree

I am a Distributor handling with an average value of 50 lakhs per year of M.F. investor stationed in the State of West Bengal and present value after 2 years is Rs. 85 lakhs. I am getting a commission of around Rs.80,000/- per year . I received an e-mail stating that all ARN holders should have their registered GST No. for non-deduction of GST from commission paid to Distributors . Should I have a GST No. in the present situation . What is the rule of Input credit in the case. Please , advise me whether in my case I will opt for GST Registration or be a non-registered GST Distributors.

It is good to see, some people expressing their views and concerns. But is it sufficient ?. It is no use discussing and conversing here. We should raise our voice and send our concerns directly to Mr. Arun Jaitley , The Finance Minister on his twitter account so that our concerns reach him within time, and if we are right and of course fortunate, he may amend the things. His twitter handle is : Arun Jaitley (@arunjaitley) ACT SEPARATELY .

I am agree with the above statement that we are small adviser having less than income 20lacs AUM bracket and we are providing our services more than a single state investor our investor may be from any state and being services through online portal designed by AMC''s or by self created plateform. So, as per my view small distributors needs to be avoided from 18% GST they should be kept at 1%-5% slab.

Agreed 100% govt as well as advisory firm need to do something regarding this.

Govt. Should keep G ST At 1% for small SUM advisor below 5 crore..

Dear Friends, After reading all comments, I think we should raise our voice. Every branch of AMC should be registered under the GST.

it is a good suggestion.Alternatively,each AMC branch in individual cities can apply for GSTN to facilitate transactions in that state as an intrastate acitivity onlY. if this is done, there is no need for AMC''s to deduct GSt from the brokerage every month ,after getting an undertaking from the distribtors that their brokerage will be with in 20 laks limit.The interpretation given that for interstate transaction, the limit of 20 lakhs limit does not apply-has no logical basis at all. In pan india, all activities with the country should have the same applicability of law.,except that I-GST canstill be applied in such cases if the brokerage exceeds 20 lakhs. This kind of relaxation or a more meaningful interpretation can benefit the majority of small distributors and it will not affect the flow of funds either as in the recent past. The AMC''s should also support this kind of logic for their own benefit too.

Basic exemption of RS 20 laks if implemented in letter and spirit will help 90%of the distributors to come out of the net. It is unfortunate that there is no one to take up our case with power centres

For small distributors like us whose earnings of commission is below Rs.10 lacs, the relief of GST should be allowed likewise the earlier exmption of Service Tax to Samall and Medium Entrepreneurs.

what Mr Snjay suggest is perfectly correct, i think gst implementation is in haste and so many things are not properly complimented, at the same time correct interpretation of mutual fund distribution business is not studied

there is lot of confusion. the picture is not clear.. please clarify the correct picture of less than 20 lakhs business done by IFA''''S .

GST has been unfairly imposed on small mutual fund distributors like us, (turnover well below Rs.20lacs). We are all AMFI certified (PAN and UID included) with no chance of any hidden income. In fact what is paid to us is printed even on the investors'' account statement. As most of us do biz only in home state, it is unfair, rather absurd that now under GST regime, the Mutual Fund houses (AMCs) will deduct 18% GST under reverse charge mechanism, from our Gross commissions. Then we have to pay further Income Tax (10%, 20%, upto 30% depending on income slab) on the same. (Income Tax will be on the Gross income before GST deduction). The commissions we get are meagre, upto few paises.(well below 1%). The AMCs are forcing us to take GST registration if we want gross payment without GST, so that they can pass off their liability to us. We will then lose the 20 lac slab and will have to pay GST and file the monthly returns. Earlier, we had to pay no service tax till Rupees 10 lacs. Then why now are we small distributors being penalised. If at all, the AMCs should bear the GST and recover from the investors for whom we distributors give service on their behalf. I hope something logical comes up urgently as we will bleed till then.

Do allow the same as proses for small distributors

I am agree

Iamagree

I too agree, some thing is better than nothing

Useful information.Thanks

there is lot of confusion. the picture is not clear.. please amplify the correct picture of less than 20 lakhs business done by IFA''S

clothes manifactur

What I feel is that once you are registered under GST the laibility of tax paying at the funds end gets relaxed as they don''t have to pay the tax. The liability of filing returns comes on our end. Since we are registered users. Other wise we can always claim the credit under the GST having brokerage income less then 20 lacs. Fund houses one by one will come out of the responsibility of giving credit to the small MFD''s. The true picture as per law is that the Fund house will have to pay tax of 18% on our behalf and then ask for credit from the GST for all those who are unregistered. But that will be an investments for them that will lose interest income for them.

This is utterly unreasonable. If a Mutual Fund Distributors has to pay double taxation of 18% GST & further Income Tax at per his slab, then it is death knell for that profession. It is noting but cruelty.

Iamfullyagree

Is it mandatory for distributor to register even if his annual earnings are below 20 lakh? I dont think so. The AMCs should take a declaration from distributors to that effect and pay the brokerage accordingly.

I second the opinion. I am very new in this field and started MF Distribution business just an year ago. For newcomer like us, GST @ 18 % is really a big burden. Our voice should reach to policymakers for some relaxations for MFDs earning less than 10 lakh brokerage

Dear All, As rightly pointed out all the AMC''s have offices in various cities. Each such AMC office must be having a separate registration in each state as an Input Service Distributor. So, if the Mutual Fund Distributors register with the respective state offices, in my humble opinion it is not an intra state transaction. I feel the AMC''s also need to take steps to get us registered with the respective state offices so that we do not have to register. Further, all AMC''s will be getting full input on any GST being paid to us. So GST they are paying is not really an expense, but it is a reverse tax which is fully refundable or adjustable with Output Tax.

I am a small distributor from Kaimur Dist. of Bihar serving my investors from Varanasi Uttar Pradesh branch offices of AMC.

Pls register my GST true it must be done

TRUE, IT MUST BE DONE.

Very big harressment as the fees of CA even will consume most of the income. Time Involved is in addition to all this

Good Thought. I totally agree . But the other thing is , if not, why can''t the AMCs have their state registrations done in each of the states respectivily. This is quite feasible. One of the health insurance Company has already done this to ease off their advisors. I one can do, why can''t others .

I want to know if the commission below twenty lackh then it is necessary to get GST registration.2.wheter AMC will deduct GST or to deposit individual. b

I think govt should take some necessary steps like service tax issues for safe guard the small and medium MFDs as well as MF industry.

Sir, This is good ideas for small mf Distributors who pay @5% GST under composit scheme. I urge Finance Ministry to consider this and implement the same.

My brokerage is not more than 3k pm.

Yes absolutely. It should be done. Our margins are too low and additional 18% with CA charges around 36000 is big burden. Small IFAs should be given benefit allowed to small traders

Pliees

need to consider condition of small distributors otherwise it will impact volume and sustainability of small distributors.

In my opinion since GST is a indirect tax & we as distributors are the service provider to the AMC therefore it can''t be deducted from our gross commission & the same should be charged from AMC on the gross commission then forwarded to respective govt dept

100% agreed with your valuable input

As per the Minisrty Communication User/Customer is liable to pay GST, Why in the case of MFDs it is not applicable?

Composition Scheme is available only for person who deal in goods and not for Service providers.

exactly i agree with the views of mr. sanjay sharma. i believe that the finance ministry will definately look into the matter and will understand our genuine concerns, hopefull to get positive response and steps from them.

I feel we can file under composition scheme & as a trader i.e. with GST of 1%.