Purchase via Commission agents

1. My client is Mobile dealer and purchase mobile through e-commerce companies.
2.He make payment to e-commerce company via credit card of third person(i.e commission agents)
3.And after that he pays all the agents via bank NEFT/RTGS.

my questions are:
1.Is ITC available on this kind of transactions?
2.Is this transaction considered correct from a legal GST perspective ?
3.any section or judgement available for that?

kindly answer for my queries..
thank you
Replies (2)
Quick Summary
This discussion addresses whether Input Tax Credit (ITC) is available for a mobile dealer purchasing phones through e-commerce companies, where payment is made via a third-party commission agent's credit card, followed by reimbursement to the agent. While ITC is generally available on such goods if conditions like GST registration and valid invoices are met, the use of a third-party credit card might raise concerns. The transaction is viewed as B2B, but clear documentation linking the payment to the invoice is crucial for GST compliance.

 ITC Availability Input Tax Credit (ITC) is available on goods transactions, including purchases from e-commerce companies, provided certain conditions are met.

 Since your client is a mobile dealer purchasing mobiles through e-commerce companies, ITC can be claimed if:

- The e-commerce company is a GST-registered supplier. - A valid tax invoice or debit note is obtained. - The goods are received, and payment is made within 180 days.

However, the payment made via a third person's credit card may raise concerns. It's essential to ensure that the payment is properly documented and linked to the invoice to avoid any potential issues with ITC claims.

Legality from a GST Perspective From a legal GST perspective, the transaction seems to be a standard business-to-business (B2B) transaction.

However, the use of a third person's credit card for payment might require additional documentation to establish a clear link between the payment and the invoice.

To ensure compliance, it's recommended that your client: -

Obtains a valid tax invoice from the e-commerce company. - Maintains proper documentation of the payment made via

Thankyou sir..

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