Principal agent

As per section 7 sub section C schedule I (3) of the CGST act 2017 ,goods sent by principal to agent without consideration will. be treated as Supply , Gst applicable .
If agent make taxable supply goods ,as per section 24 sub section (vii) of the CGST act 2017 registration is required .

Dear Prasad

thanks

my question to u is that in my example agent is selling goods on principal behalf, 

So who will issue invoice to the buyer ?

will it be considered as agent's outward supplyor principal outward supply?

how will billing take place?

regards

shivani

Dear Pankaj

your reply is not showing up

THERE ARE TWO TO WAYS SELL THROUGH AGENT :

1. BILL IS RAISE BY SUPPLIER TO HIS CLIENT, AGENT TAKES THE COMMSSION FROM SUPPLIER FOR MANAGING SUPPLIES 

2. BILL IS RAISE BY SUPPLIER TO AGENT & AGENT FURTHER ISSUE HIS BILL TO CLIENT

 

AS TO ABOVE SAID CONDITION LETS TAKE 1ST CONDITION: ACCORDING TO SECTION 2(13) OF IGST ACT , INTERMEDIARY IS AN AGENTWHO ARRNAGES OR SUPPLY GOODS & SERIVES BETWEEN TWO OR MORE PERSONS, BUT INTERMEDIARY SHOULD'NT SUPPLY GOODS OR SERVICES ON HIS OWN ACCOUNT. SO IN THIS CASE AGENT HAS TO BE REGISTERED ONLY IF HIS TURNOVER (COMMSSION) EXCEEED 20 LAC

AS PER  2ND CONDITION : AS PER SECTION 2(5) CGST ACT  "AGENTS" MEANS A PERSON INCLUDING A FACTOR , BROKER, COMMISSION AGENT DEL CREDERE AGENT OR AUCTIONER OR ANY OTHER MERCANTILE AGENT  , WHO CARRIES ON THE BUSINESS OF SUPPLY OR RECEIPT OF GOODS OR SERVICES OR BOTH ON BEHALF OF OTHER.  SO SUCH AGENT AS PER SECTION 24(VII) CGST ACT IS COMPULSORY TO TAKE  REGISTRATION

SO AS TO YOUR QUERY IF AGENT "Y" FALLS UNDER 1ST CONDITON THEN MATERIAL SEND BY X TO Y IS NOT SUPPLY & AS PER CONDITION 2ND, MR "X" THE PRINCIPAL WILL RAISE BILL TO HIS AGENT "Y",  WILL BE TREATED AS SUPPLY

 

Mr rawat who will file return Gstr3b , Gstr 1 , etc , principal or register agent? .

Dear Prasad
As per condition 1 If the Agent is taking only commission , then Offcourse it means the Bill is being raise by Principal to client directly , so in this condition the principal will file his GSTr 1 , 3b

As per condition 2nd : principal raisng Bill to Agent & Agent further raising bill to client so in this case both Agent & principal will file GSTR 1 & 3b