Does a mutual fund distributor pay GST on commission?

Lesson 33 of 50 for advisers · GST on your commission · 3 min read · Reviewed 13 Nov 2026

Quick answer

A distributor whose aggregate turnover in a year exceeds ₹20 lakh (₹10 lakh in some special category states) registers for GST. Financial services of this kind are taxed at 18%. Mutual fund distributors are not on the reverse-charge list, which names insurance and recovery agents, so a registered distributor invoices the fund house with GST. Confirm current notifications with your CA.

A distributor registers for GST once aggregate turnover in a financial year exceeds ₹20 lakh, or ₹10 lakh in some special category states.

Financial and related services of this kind are taxed at 18%: 9% central and 9% state GST.

The reverse-charge list names insurance agents, recovery agents and bank direct selling agents. Mutual fund distributors aren’t on it, so a registered distributor charges GST and invoices the fund house.

Key idea: This lesson reads the 2019 consolidated notifications; ask your CA about any change since.

Sources

Try the short quiz on this page to check what stuck.

Common questions

Which notification sets the 18% rate?

Notification 11/2017-Central Tax (Rate), entry 15(vii), as consolidated to 1 Apr 2019.

Which one lists reverse charge services?

Notification 13/2017-Central Tax (Rate).

Is commission below ₹20 lakh free of GST?

Registration is needed only above the threshold, counting all your taxable turnover, not just commission.

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