Invoicing procedure for auction sales

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This query is : Resolved

Sugata Ghosh (Querist)

28 November 2016 In case of sale of tea through auction, according to the present system, Tax Invoices are issued by the auctioneer with their own VAT and Service Tax registrations. Account Sales and Form 12 of WB-VAT Act are issued by the auctioneers to the Sellers, so that they can take credit of the VAT deposited by the auctioneer.

It seems forms under VAT Act will be discontinued during the GST regime. If Invoicing is done by the auctioneer in the same manner, how will the Seller take credit of the tax deposited by the auctioneer on such auction sales?

Is it so that the Invoicing will need to be done by the Seller instead of the auctioneer?

CA Suresh Jain

CA Suresh Jain (Expert)

06 December 2016 Auctioneer is required to be registered and he only has to issue Invoice

Sugata Ghosh

Sugata Ghosh (Querist)

10 June 2017 Tks for the reply Mr Jain
In the auctioneer's bill to the buyer there would be price of the Tea as well as his brokerage separately.
Would this be a Composite Supply? If so, what would be the Principal Supply to determine the rate of GST?

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