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( ) He has taken registration under the GST law.
(ii) He has filed a declaration, in the prescribed form,

Ø that he exercises the option to pay tax on the said service under forward charge and,
Ø to comply with all the provisions of GST law as they apply to a person liable for paying the tax for
supply of any goods &/or services &
Ø that he shall not withdraw the said option within a period of 1 year from the date of exercising such

option.
(iii) He makes a declaration on the invoice issued by him in prescribed form to the publisher.

Services by Individual Direct Selling Agents

CCP 03.02.10.00
Mr. Vishal wants a loan of 10,00,000. For this, he has taken the service of an individual, Mr. Rudra, ₹
who is a Direct Selling agent of HDFC bank. Bank pay the commission to Mr. Rudra @2% of loan
granted to Mr. Vishal for giving a customer to the bank. Who is liable to pay GST in this case? Also

calculate the amount of GST payable, if GST rate is 18%.
Answer:-
Legal Provision:-

As per section 9(3) of CGST Act, if services are provided by an individual Direct Selling Agent (DSA) other
than body corporate, partnership or limited liability partnership firm to
Ø any banking company or
Ø non-banking financial company,
located in a taxable territory, then the GST is payable on reverse charge basis by recipient.

Discussion & Conclusion:-
Ü In the given case, Mr. Rudra is an individual who is providing services of direct selling agent to a banking
company i.e. HDFC Bank.

Ü Therefore, the HDFC bank (i.e. the recipient) is liable to pay GST under reverse charge.
Ü Calculation of GST payable:-
Particulars Amount in ₹
Loan Amount 10,00,000
Commission paid by bank to Rudra (Rs. 10,00,000 * 2%) 20,000
GST Payable @18% (Rs. 20,000 * 18%) 3,600

Services of Supplying Security Personnel
CCP 03.02.11.00
The Professionals Security-Pune is a firm of security agency providing services by way of supply of

security personnel to following categories of persons:-
I) XYZ Pvt. Ltd. (a company registered under CGST Act, 2017), valuing ₹ 10 lakhs.
ii) Sindh Co-operative Credit Society, Mumbai, which is unregistered under CGST Act, 2017, ₹ 8 lakhs.
iii) Mr. Altaf, from Gujarat (registered under section 10 of CGST Act, 2017), value of ₹ 2 lakhs.

iv) Service provided to Star Industries Ltd., USA, value being ₹ 7 lakhs.
Determine the taxable value as well as the tax liability of The Professionals Security-Pune, assuming
CGST @ 9%, SGST @ 9% and IGST @ 18%.

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