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  • MF News GST registered IFAs earning less than Rs.20 lakh can file “NIL” returns: GST helpline

    GST registered IFAs earning less than Rs.20 lakh can file “NIL” returns: GST helpline

    A few compliance officials who have spoken to GST helpline officials told Cafemutual that mutual fund distributors having GST registration and earning less than Rs.20 lakhs, have an option to file NIL returns.
    Nishant Patnaik Nov 15, 2017

    This a good news for mutual fund distributors who have already obtained GST registration number and cannot cancel owing to the lock in period of one year. A few compliance officials who have spoken to GST helpline officials told Cafemutual that mutual fund distributors who are registered with GST and earn less than Rs.20 lakhs, have an option to file NIL returns.

    Last month, the government has deferred the implementation of RCM until March 2018. The move has benefited mutual fund distributors who do not have GST registration number. In addition, the distributors who have migrated from service tax registration number to GST registration number can cancel their existing GST registration to avail this benefit.

    However, distributors who had taken GST registration on voluntary basis have no relaxation. These distributors have to wait for one year to cancel or as and when the department enables online option.

    A compliance official from a foreign fund house said that the intention of government is to extend benefits to distributors earning less than Rs.20 lakh. “We have spoken to GST officials on this issue. The officials said that such distributors can file nil returns”

    Ravikumar Somasi, General Manager Karvy Computershare says, “Distributors can file ‘NIL’ returns, provided no GST invoices are issued by them. CBEC Helpdesk on 18001200232 confirmed the same. However, we urge the distributors to consult their local GST Nodal Officers or their Tax Advisors, before taking this up.”

    On the process of filing nil returns, another compliance official of a large fund house said that distributors can file nil returns online by visiting GST portal.

     

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    33 Comments
    praveen verma · 6 years ago `
    Thank you Cafe Mutual for posting such good news.
    Stanislaus D'souza · 6 years ago `
    Thank you so much.
    Arbind Modi · 6 years ago `
    Thank you cafe mutual for updaing on all matter relared to IFA community.. We are greatful..
    Pawan Khurana · 6 years ago `
    Sir,
    There are no clear instructions for the Distributor who are settle in HILL state like Uttarakhand, HIMACHAL & N.E. States.
    Please guide us that hill state in 10 lakh or 20 lakh earning exemption.
    And who has taken voluntary GST registration, can file the nill return ( in below 10 lakh or 20 lakh)
    Please clear all doubt.
    Pawan khurana · 6 years ago
    Nishant Sir,
    Please clear the all doubt related to HILL STATE. N.E. UTTARAKHAND & HIMACHAL.
    I have raised the above query last week.
    Reply
    K Bhanu · 6 years ago `
    Thanks a lot for this good information of GST NIL return.
    Patel Rakeshkumar manubhai · 6 years ago `
    Thank you cafemutual give me good news about GST
    Arvind Tiwari · 6 years ago `
    This is good information
    Hiren Dedhia · 6 years ago `
    Just now contacted above helpline, they say no such decisions has been taken nor any notifications has been issued, so you have to file regular returns as per your income.
    Alok kumar · 6 years ago `
    Whether GST is not added in commission paid by Mf Co. If added then whether it is not required to deposite.
    Jay Lal Singh · 6 years ago `
    Thanks Cafe mutual to given information
    ASHOK KUMAR ARORA · 6 years ago `
    Thank You for daily updations.
    Anil Arora · 6 years ago `
    I work as a Sub broker with a National Distributor that obviously has more than 20 lac commission, and my earning is below that 20 lac threshold. Now as I had applied for GST in July, being a responsible foolish and law abiding citizen, the ND asked me to generate an invoice, and they sent me the GST amount. What should I do?
    RAJESH KUMAR · 6 years ago `
    Mr.Nishant Patnaik
    can we use these articles as legal papers.. News is too good for me, but needs 100% clearance before filling NIL return....

    please help all IFA to get legal document regarding this.

    Thanking you

    IFA Rajesh Kumar
    9878841007
    Nishant Patnaik · 6 years ago
    We do not have any legal document on this. This is what we have checked with GST helpline.
    Hiren Dedhia · 6 years ago
    Hi Nishant, in GST Helpline before conversation start, the recording says that answers given here are not legally binding on the Govt side.
    Reply
    NAVEEN · 6 years ago `
    i am contact to gstin they said file gst returns nil till surrender option is not open and not pay tax.
    Manish agarwal · 6 years ago `
    Sir I am a share sub broker and MF distributer earning less 20 lakh I registered in gst august2017 please advice how I file gst

    SEEMA SINGH · 6 years ago `
    GREAT NEWS OF ALL HONEST IFA WHO HAVE TAKEN GST NUMBER BUT BUSINESSES LESS THEN 20 LAKH.
    sANDIP sHAH · 6 years ago `
    Dear All,
    I have called two-three time to GST Help Desk as well CBEC help Desk. On the basis of conversation i understand that they are having no clarity about implications of filling NIL Return by Registered Distributor having income bellow 20 Lakh.
    their answers are not consistent. BE AWARE
    Arvi Investment Services · 6 years ago `
    Sir, thanks for the info. But when the service receipient is giving a tax invoice draft indicating the GST amount and Service taxable value separately, and further saying that the brokerage is inclusive of GST, how the openion of GST helpline officers align with the GST rules, without a document, or notification.
    Again, by suspending the RCM till 31st March, where as per GST rules, the adding of GST in GSTR1 and ITC in GSTR2 doesn't give any revenue to Govt, but only Account info, they have suspended RCM.
    When MF say brokerage is inclusive of GST and some who took registration pay to Govt from the real brokerage and the Service Recepients AMCs taking ITC on thus amount, will it be against the fair practices as per SEBI rules. And some AMCs rightfully pay the GST in addition to brokerage to IFAs and take ITC.
    Request your good office views on this AMC taking GST when it is deducted from our brokerage.
    One more question for clarification... There is no TDS from the brokerage paid. What is the trigger point beyond which AMC is duly required by law to deduct TDS from the brokerage.
    DEEPAK BARASIA · 6 years ago `
    Dear Mr Nishant Patnaik,
    This is universal rule for every GST regd person that he can file NIL returns if he has not issued any invoice during a particular month.

    Now the question is how can an IFA refrain from issuing invoices for the services rendered when brokerage has been received. As per law, Regd service provider has to issue invoice within 30 days from the cut off date. In case when an invoice is not issued, date of receipt of service charges is considered as time of supply of service and creates liability to pay GST. Is there any law, rule, notification, amendment which brings change in this rule, please specify.

    Cafemutual is a renowned platform for Mutual Fund distributors & let's not create any confusion on law which later cuases trouble for Regd IFA's on the basis of such posts
    DIPAK GANDHI · 6 years ago `
    IF EARNINGS R IN RANGE OF 1.5 TO 1.6 LAC PER MO NTH--WHAT TO DO..AS IT MAY REACH 20-LAC OR NOT BY MARCH-18..IT ALL DEPENDS ON MKT CONDITIONS AND BUSINESS DONE ...WHICH IS UNCERTAIN..PL GUIDE..AS IF GST IS NOT PAID AND TOTAL REACHED 20 LAC PLUS IN FEB-18-GST LIABLITY WILL B MUCH MORE (APPROX-4 LAC)WHICH IS NOT COMFORTABLE FOR ANY IFA..
    Amit Kumar Joshi · 6 years ago `
    What would be implications for those Arn holder IFA whose income from service is less than 20lacs but since he is also a goods supplier and raises gst invoice for goods supplied
    jigar adhiya · 6 years ago `
    hello
    we have obtained voluntary registration
    so now what we have to do?
    we will have to pay GST or we will have to file NIL returns
    Nimesh · 6 years ago `
    What are gst liabilities for ifa with income less than 20lakhs but having gst registration due to supply and manufacturing of cartons which cannot be withdraw.
    CA Ram Kohli · 6 years ago `
    Sir, please study sub section 7 of section 24 of cgst act. Limit of 20 lakhs don't apply on any agent or distributor.. so please clarify this section.. i feel that this article doesnot convey any right information as gst act is clear about agent..
    CA Ram Kohli · 6 years ago `
    Sir, please study sub section 7 of section 24 of cgst act. Limit of 20 lakhs don't apply on any agent or distributor.. so please clarify this section.. i feel that this article doesnot convey any right information as gst act is clear about agent..
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