GST on e-agents

This query is : Resolved

Rohit Jaithliya (Querist)
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06 October 2017 The case is- A company is an online platform for sale of paintings made by artist. The artist expects a fixed amount from the sale. The company charges fixed amount and commission on painting to the buyer and remits the fixed amount to the artist. What is the GST impact? Does the e-agent/company charge GST on entire amount or just commission. Is this a case of pure agent? Does artist raise separate bill for painting and company raise separate bill for commission?

CA Ravi Kumar Murugesh

CA Ravi Kumar Murugesh (Expert)
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06 October 2017 well. it is understood that the Company is selling pain directly to a customer through online. In this case, the amount whatever collected is a sale price which attracts GST. A separate GST bill including fixed and commission should charge from customer.
Second, wharever the amount paying to the artist, it is a purchase transaction and if that artist is a GST dealer then the GST paid on invoice raised by him is eligible for Input tax credit to adjust from output tax. If the artist is not a GST dealer then the company should pay GST on reverse charge basis and claim ITC.