Your Voice Date: 27-08-2017
GST wrong implementation by AMCs
Name : Sunil Lalge Firm Name : Wealth Creating Services
ARN No : 84264 City : Hubli
Good morning friends
I have sent following mail to AMFI for GST clarification.
Who are agree for that, please send mail / letter from your end also.

Respected sir,

SUB:  GST clarification


I am AMHI registered Mutual fund distributor having ARN 84264  Sunil L Lalge With GSTIN 29ADDPL1907H1ZN.

I am happy  to see AMFI  is implementing GST law very firmly. It has given GST FAQ on its site.

I am finding some doubts in its implementation.

Some of my understanding on GST  ( in short)

1.        Any person supplying Goods and services should register to GST law. Who are  doing business only intrastate can have option for not registration up to Rs 20 lakhs of turnover for goods / 20 lakhs income for services.  For businesses having inter-state transactions they must register to GST irrespective of their turnover / income.

2.       Any entity registered to GST, should collect GST on their transaction value from their client and paid to government by process of GST return filing.  If their transaction is  intra-state they should collect SGST and CGST to be paid government. In our case (Mutual fund distributor) GST rate is 18% they should collect SGST 9% and CGST 9% and to be paid to Govt). If transaction is inter-state then they should collect IGST 18% and paid to govt.

3.       If Distributor is not registered to GST then AMC should pay GST on behalf of Distributor to Govt under reverse charge mechanism (RCM). AMC is  not eligible to take ITC (Input tax credit), That is considered as their supply(sale). So Distributor is penalized as they are not in GSTN network.

4.        If distributor is also registered to GST then AMC should pay the GST to registered distributor on his brokerage amount. Distributor will in turn pay the GST collected to Govt by the process of GST return filing.  AMC is eligible to take  this paid GST as their ITC( Input tax credit) as that is tax paid on business expenses . So AMC  and Distributor   both are benefitted as they under  GSTN networks

As I have received the brokerage for the month of JULY services, No  AMC are paid GST on my brokerage.  I am expecting all AMC are to be paid GST on my brokerage amount.

Please clarify me why AMC are not paid GST on brokerage to me.  As all AMC offices at my city  are telling that this stand is taken at AMFI level.

I am expecting valuable reply from you.