Scope of principal and agent relationship under Schedule I of GGST Act, 2017 in the context of del-credrc agent.
CIRCULAR No. 73\/2018-GST Dated:- 5-11-2018 Gujarat SGST
GST – States
CIRCULAR
\nCommissioner of State Tax,
\nGujarat State, Ahmedabad
\nDated 5th November, 2018
\nCIRCULAR No.73\/2018-GST
\nNo. GSL\/GST\/B.15
\nSubject: Scope of principal and agent relationship under Schedule I of GGST Act, 2017 in the context of del-credrc agent.
\nPost issuance of circular No. 57\/201 S-GST dated the 5th November, 2018 (effective from 4th September, 2018). various representations have been received from the trade and industry. as well as from the field formations regarding the scope and ambit of principal agent relationship under GST in the context of del-credre agent (hereinafter referred to as “DCA”). In order to clarify these issues and to ensure uniformity of implementation across field formations, the Commissioner of State Tax, in exercise of its powers conferred under section 168 (1) o<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n h some interest at a later date. This loan is to be repaid by the buyer along with an interest to the DCA at a rate mutually agreed between DCA and buyer. Concerns lune been expressed regarding the valuation of supplies from Principal to recipient where the payment for such supply is being discharged by the recipient through the loan provided by DCA or by the DCA himself. Issues arising out of such loan arrangement have been examined and the clarification on the same are as below: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n supply. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Scope of principal and agent relationship under Schedule I of GGST Act, 2017 in the context of del-credrc agent.CIRCULAR No. 73\/2018-GST Dated:- 5-11-2018 Gujarat SGSTGST – StatesCIRCULAR Commissioner of State Tax, Gujarat State, Ahmedabad Dated 5th November, 2018 CIRCULAR No.73\/2018-GST No. GSL\/GST\/B.15 Subject: Scope of principal and agent relationship under Schedule I of GGST Act, … Continue reading “Scope of principal and agent relationship under Schedule I of GGST Act, 2017 in the context of del-credrc agent.”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15133","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15133"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15133\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nSl. No.
\nIssue
\nClarification
\n1
\nWhether a DCA falls under the ambit of agent under Para 3 of Schedule I of the GGST Act?
\nAs already clarified vide circular No. 57\/31\/2018-GST dated 4th September, 2018, whether or not the DCA will fall under the ambit of agent under Para 3 of Schedule I of the GGST Act depends on the following possible scenarios:
\nIn case where the invoice for supply of goods is issued by the supplier to the customer, either himself or through DCA, the DCA does not fall under the ambit of <\/p>\n
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\nTherefore, the interest being charged by the DCA would not form part of the value of supply of goods supplied (to the buyer) by the supplier. It may be noted that vide notification No. 12\/2017-State Tax (Rate) dated 30th June, 2017 (S. No. 27), services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services) has been exempted.
\n3.
\nWhere DCA is an agent under Para 3 of Schedule I of the GGST Act and makes payment to the principal on behalf of the buyer and charges interest to the buyer for delayed payment along with the value of goods being supplied, whether the interest will form a part of the value of supply of goods also or not?
\nIn such a scenario following activities are taking place:
\n1. Supply of goods by the supplier (principal) to the DCA;
\n2. Further supply of goods by the DCA to the recipient;
\n3. Supply of agency services by the DCA to the su<\/p>\n
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