1. What is Commission with GST?

Commission with GST is the total amount payable to an agent or broker, including the Goods and Services Tax component. In India, most professional services including commissions are subject to GST at the prevailing rate (typically 18%).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Sale\ Price \) — Total value of the sale in INR
• \( Commission\ Rate \) — Agreed percentage commission
• \( GST\ Rate \) — Applicable GST rate (typically 18%)

Explanation: The calculation first determines the base commission, then adds the GST component to arrive at the total payable amount.

3. Importance of GST in Commission

Details: GST is a mandatory tax in India that must be included in professional service charges. The commission recipient must be GST-registered if their turnover exceeds ₹20 lakhs (₹10 lakhs for special category states).

4. Using the Calculator

Tips: Enter the sale amount in INR, the agreed commission rate as a percentage, and the applicable GST rate (default is 18%). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard GST rate for commissions in India?
A: The standard rate is 18%, but always verify current rates as they may change.

Q2: Who is responsible for paying GST on commissions?
A: The service provider (commission recipient) is responsible for collecting and remitting GST to the government.

Q3: Can GST be claimed as input tax credit?
A: Yes, if the recipient is GST-registered and the commission is for business purposes, they can claim input tax credit.

Q4: Are there different GST rates for different types of commissions?
A: Most professional services attract 18% GST, but some specific services may have different rates.

Q5: How should commission with GST be shown on invoices?
A: Invoices should clearly show the base commission amount, GST rate, GST amount, and total payable.