Question39: As per section 24 (vii) an agent is required to get compulsory registered
My query is
If a person arrange a transaction of sales between customer and shopkeeper whether that person is required to compulsory registration. As he is getting commission from both the parties from customer as well as shopkeeper. for example a person came to Haryana in chandni chowk to purchase saree for further sale through an agent. After completion the sale of Rs. 100000/- the agent get a commission of Rs. 3000/ from shopkeeper and 2000 from customer. Whether agent is required to get registered under section 24 of CGST Act'

Answer According to Section 24 OF CGST Act
(vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
There can be two types of cases:
First the commission is paid on the basis of some performance like on sale of property etc If a agent search a buyer for seller then he does not sale goods on
behalf of vendor (other person) in that case this subsection will not apply
Second case when a agent sale goods then he sale on behalf of other person like the travel agent sale tickets of air line in that case this sub section will apply
Your case is covered under First situation as there is no supply by the agent on behalf of other person and only commission is received by the agent. Thus there is no requirement of compulsorily registration. (Reply dt. 23/4/2018)