Aggregate turnover for agent vs principal

When an agent supplies in behalf of principal , that supply is added in the turnover of agent . This supply will be filed by agent in his outward supply form. Hence , principal will not file it.
Is this treatment correct?
Replies (7)
Quick Summary
This discussion clarifies how aggregate turnover is calculated for agents in GST. Generally, when an agent supplies goods or services on behalf of a principal, this is included in the agent's turnover and filed in their outward supply form. However, if the agent issues their own invoice for these supplies, it may not be part of their aggregate turnover. The key distinction lies in whether the agent is registered under Para 3 of the CGST Act, which impacts compulsory registration and threshold benefits. If the agent acts in their own name, both agent and principal may need to file; if in the principal's name, only the principal files for the outward supply.

The principal will pay the agent commission or fee based on sales volume. The agent will collect all the consideration from customers and give it to the principal after deducting his fee or commission. So, based on this, since inventory risks and credit risks are not involved, similarly, taxation is not done by the agent.

In the next scenario, if the agent buys the goods from principal and sells them, the agent becomes the principal and records COS in his financial statements and files for taxes as well. 

In simple words , 

if agent issue its own invoice (covered under Para3 )  for further supplies then sale on the behalf of principal by agent shall NOT be part of turnover of agent 

 

You have to see whether AGENT covered under Para 3 or not ?

Agent of Para 3 > Compulsory registration required > no threshold benefit available 

Agent of other than Para 3 > Threshold benefit available and in this case only supply made on the behalf of principal shall be considered for determining Aggregate Turnover of Agent 

All right, an agent takes care consideration from customers and commission from principal. He also takes care of output tax. 

Compulsory registration for agent is required even if the turn over is 100₹. But even I didn’t not get this sorry. The tax language is very hard to understand. But this link could help.

https://www.caclubindia.com/articles/understanding-aggregate-turnover-in-gst-33723.asp

 

If agent supplies goods in his own name then, supply made on behalf of Principal will be added to the turnover of agent.....
Here pricipal and agent both will have to file for the supply made.

on the otherhand, if agent supplies goods in his principal name, then only principal will be liable to file gst for the outward supply, and agent will only take comm and pay gst for the same.

For further clarification,
You may call/ Watspp : 8779014967
Email : anandtaxconsultant2014 @ gmail.com
Fully Agree with reply by Mr. Naveen chand

Please see Explanation (i) to Section 22 of the CGST ACt 2017, it will definately clear your doubt.

That Explanation specifically talks about the the aggregate turnovers of an agent, that how in this particular section the aggregate turnovers of an agent will be calculated.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
Featured 07 November 2026
Chartered Accountant

DPV & Associates

Chennai

CA

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details