According to media reports, mutual fund distributors and independent financial advisors are required to enroll for Goods & Service Tax (GST) registration even if the commission earned is less than Rs. 20 lakh in a financial year. As per the communication from Association of Mutual Funds in India (AMFI), from Jul 1, fund houses will deduct GST from the commission paid to distributors who do not have a GST registration number and forward this tax to the government. For distributors with GST registration, Asset Management Company (AMC) will continue to use the forward charge mechanism, i.e. AMCs will pay gross commission to them.