Applicability of Section 24 of the CGST Act 2017 on Mutual Fund Agents, Goods and Services Tax - GST

[Abhinav Jandial]

My client is a mutual funds agent and has been served SCN from department for Non-Payment of GST on commission received from AMC for the years 2017-18 to 2023-24. His turnover is less than 20 lakhs from 2017-18 to 2020-21. but the officer is charging him under section 24(vii) and applying section 76 on him (Tax collected but not paid to Government since the AMC has declared that whatever commsion we pay to agent is all inclusive of GST. But my client have been receiving 1% commission before GST and after GST also. Nor he has raised any invoice or collected any GST from AMC.

I think there is any circular or notification REGARDING NON-APPLICABILITY OF section 24 on mutual fund agents.

please advise