Commission and freight role in GST

Goods and Services Tax – Started By: – RAM SHARMA – Dated:- 2-9-2016 Last Replied Date:- 4-9-2016 – Dear Experts,We are manufacturer of exciasable goods and selling our goods through our various consignment agent in all over india against form F. We are providing 3% commission and freight to our consignment agent for selling our goods and availing service tax cenvat on such commission and freight up to the consignment agent warehouse. I would like to know your opinion in this regard after implementation of GST impact.Thanks & Regard – Reply By CS SANJAY MALHOTRA – The Reply = All forms i.e. C/D/E-1/F will be done away with in GST regime and the tax has to be paid in respect of supply to goods to own warehouse / sales through C&F ag

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all undergo change/modifications. All have to wait till time a final law is enacted.. Thanks. – Reply By Ganeshan Kalyani – The Reply = Sir, IGST shall be payable by sending unit and the receiving unit shall be able to take credit by adjusting first against IGST payable followed by CGST and finally against SGST. The said sequence has been prescribed in the draft GST Law.Thanks – Reply By CA Surender Gupta – The Reply = The transactions between the principal and agent will be treated as separate would be chargeable to GST as per the proposed scheme. GST paid by the principal will be available to consignment agent / dealer as ITC and so no on subsequent sale. Therefore, it is bound that, the business strategy are going to change. The manufact

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er to his branch in another State and the receiving location may sell those goods in the same month or by two or three months time depend upon the market demand. Generally looking into the need of that location stock transfer is taken place. But practically may take that much time in selling the goods in receiving branch state. Thus only when the goods are locally sold the Exchequer are getting the revenue. So there is a time gap from the date when goods are stock transfer and the date when actual sale is taken place. To bridge a gap and to prepone the tax collection Govt has come up which such provision where even stock transfer is taxes. This would make the authority to earn tax at the earlier time. Thanks. – Discussion-Forum – Knowledge

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