Applicability of gst act
This query is : Open
22 July 2017
Respected Sir,
I am a sales agent. A distributor 'X' purchased goods from Company 'Y'. I received goods from 'X', sold them to retailers and deposit all money collected on account of sales to 'X' at the evening. I get a marginal commission in lieu of my service.
My average sales per day is INR 40,000.00 and consequently annual average sales is INR 1,46,00,000.00.
But, my commission @ 0.6%(approx.) is INR 87,600.00.
Is GST Act applicable to me? Please advise me.
I am a sales agent. A distributor 'X' purchased goods from Company 'Y'. I received goods from 'X', sold them to retailers and deposit all money collected on account of sales to 'X' at the evening. I get a marginal commission in lieu of my service.
My average sales per day is INR 40,000.00 and consequently annual average sales is INR 1,46,00,000.00.
But, my commission @ 0.6%(approx.) is INR 87,600.00.
Is GST Act applicable to me? Please advise me.
22 July 2017
Compulsory registration for person supply goods or services on behalf of others as agents or otherwise as per section 24 (vii)
28 July 2017
Respected Sir,
Invoice is raised in the name of the retailer. I just provide service of dispatching the goods to the retailer. My revenue from such service is INR 87,600.00. Thus, Section 22(1) of CGST Act, 2017 is not applicable to me. Does Section 24(vii) super cede Section 22(1)? If so, how can I file my GST Return. Does receipt of goods from the distributor amount to Inward Supply and dispatch of goods to retailers amount to Outward supply? I think I am just an commission based employee of the said distributor. Thus, Section 24(vii) is also not applicable to me.
Please consider my confusion and advise me.
Invoice is raised in the name of the retailer. I just provide service of dispatching the goods to the retailer. My revenue from such service is INR 87,600.00. Thus, Section 22(1) of CGST Act, 2017 is not applicable to me. Does Section 24(vii) super cede Section 22(1)? If so, how can I file my GST Return. Does receipt of goods from the distributor amount to Inward Supply and dispatch of goods to retailers amount to Outward supply? I think I am just an commission based employee of the said distributor. Thus, Section 24(vii) is also not applicable to me.
Please consider my confusion and advise me.
28 July 2017
As per schedule 1 transactions between principal and agent are supplies. Registration is mandatory for you under section 24
29 July 2017
Respected Sir,
Schedule I states that following activities are to be treated as supply even if made without consideration:
1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
2. Supply of goods or services or both between related persons or between distinct persons as specified in Section 25, when made in the course of furtherance of business.
Under which of the above category, I would fall? I think provisions of Schedule II relating to Transfer is applicable to me which states that following activities are to be treated as Supply of goods or Supply of services:
(a) any transfer of the title in goods is a supply of goods;
(b) any transfer of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of services;
(c) any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed, is a supply of goods.
Clause (b) above and Section 22(1) protect me from being liable to registration under GST Act. What is your opinion, Sir?
Schedule I states that following activities are to be treated as supply even if made without consideration:
1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
2. Supply of goods or services or both between related persons or between distinct persons as specified in Section 25, when made in the course of furtherance of business.
Under which of the above category, I would fall? I think provisions of Schedule II relating to Transfer is applicable to me which states that following activities are to be treated as Supply of goods or Supply of services:
(a) any transfer of the title in goods is a supply of goods;
(b) any transfer of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of services;
(c) any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed, is a supply of goods.
Clause (b) above and Section 22(1) protect me from being liable to registration under GST Act. What is your opinion, Sir?
30 July 2017
You are required to be registered under 24(vii). Sec 24 supercedes section 22.
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