One of our readers wrote to us with this query:
Dear Team Cafemutual,
I am a Maharashtra based mutual fund distributor.
My income from commission will cross the threshold limit of Rs.20 lakh in FY 2021-22. I would like to understand when should I obtain GST registration number to comply with the GST norms? Is it during the current financial year or after the end of the financial year?
In addition, please help me understand when should I opt for GST Composition Scheme?
Deepak Khurana
Pulgaon, Wardha
Hi Deepak,
You will be required to obtain GST registration number within 30 days of reaching the threshold limit of Rs.20 lakh income. Here income is commission earned from all financial products like mutual funds, insurance, p2p lending and so on.
You need not wait for the end of financial year to obtain GST registration. Please note that you will have to pay GST on pro-rata basis.
You can obtain it by filing an online application form on the GST registration portal and key in details of PAN, email id and mobile number. Once the platform verifies these three details, you will have to key in details of your distribution business. You can upload the application form online by attaching scanned copies of your documents. You will get your GST registration within three working days.
In addition, you can opt for GST Composition scheme at the time of obtaining GST registration.
Once you get your GST registration, you will have to update GST identification online on AMFI website to avail the benefits of input credit. You will have to key in the ARN code and PAN details. An OTP will be generated and sent to the registered mobile number and email address. You will be required to update state-wise GSTN numbers and upload the registration certificate images.
Alternatively, you can send an email to amfigst@camsonline.com with details of the GST number. You will also have to attach scanned copies of GST registration certificates.
GST norms mandates distributors earning over Rs.20 lakh a year have to take GST registration. The limit is Rs.10 lakh for distributors from special states/UTs comprising Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
For further help, you can seek clarity at GST Seva Kendras. GST Seva Kendra aims to resolve grievances related to GST.
Please note that Cafemutual has spoken to GST experts at consulting firms, compliance officials at AMCs and chartered accountants to write this report. We intend to clarify your doubts on GST. This does not tantamount to be a tax advice of any nature or a recommendation. Please take advice from a qualified tax advisor for your guidance.
