Section 86 Liability of Agent and Principal - GST Ready Reckoner - GST

Liability of Agent and Principal Agent Principal Jointly Severally liable As Per Section 86 Where an agent supplies or receives any taxable goods on behalf of his principal, such agent and his principal shall, jointly and severally, be liable to pay the tax payable on such goods under this Act. Example 1 : let say, ABCD Manufactures Ltd. engages Raghu Sons as an agent to sell goods on its behalf. Raghu Sons sells goods to Krishna Associates on behalf of ABCD manufacture Ltd. Answer 1) In such a case Both ABCD Manufactures Ltd. Raghu Sons shall, jointly and severally, be liable to pay GST payable on such goods. As per Section 86 Where an agent supplies or receives any taxable goods on behalf of his principal, such agent and his principal shall, jointly and severally, be liable to pay the tax payable on such goods under this Act. Example 2: ABCD Manufactures Ltd. engages Raghu Sons as an agent to sell goods on its behalf. Raghu Sons sells goods to Swami Associates on behalf of ABCD manufacture Ltd. Answer 2) In such a case Both ABCD Manufactures Ltd. Raghu Sons shall, jointly and severally, be liable to pay GST payable on such goods. As per Section 86 Where an agent supplies or receives any taxable goods on behalf of his principal, such agent and his principal shall, jointly and severally, be liable to pay the tax payable on such goods under this Act.