Scope of principal and agent relationship under Schedule I of MGST Act. 2017 in the context of del-credre agent.

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..... issuance of circular No. 57/31/2018-GST dated 4th September, 2018 from F. No. CBEC/20/16/4/2018-GST, and Trade Circular No. 39T of 2018 dated 31st December 2018 (by MGSTD), various representations have been received from the trade and industry, as well as from the field formations regarding the scope and ambit of principal agent relationship under GST in the context of del-credre agent (hereinafter referred to as DCA ). In order to clarify these issues and to ensure uniformity of implementation across field formations, the Commissioner of State Tax, Maharashtra State, in exercise of its powers conferred under section 168 (1) of the Maharashtra Goods and Services Tax Act, 2017 (hereinafter referred to as MGST Act ) hereby clarifies the is .....

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..... 1. Whether a DCA falls under the ambit of agent under Para 3 of Schedule I of the MGST Act? As already clarified vide CBIC Circular No. 57/31/2018-GST dated 4 th September, 2018, and Trade Circular No. 39T of 2018 dated 31 st December 2018 whether or not the DCA will fall under the ambit of agent under Para 3 of Schedule I of the MGST Act depends on the following possible scenarios: 1. In case where the invoice for supply of goods is issued by the supplier to the customer, either himself or through DCA, the DCA does not fall under the ambit of agent. 2. In case where the invoice for supply of goods is issued by the DCA in his own name, the DCA would fall u .....

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..... 3. Where DCA is an agent under Para 3 of Schedule I of the MGST Act and makes payment to the principal on behalf of the buyer and charges interest to the buyer for delayed payment along with the value of goods being supplied, whether the interest will form a part of the value of supply of goods also or not? In such a scenario following activities are taking place: 1. Supply of goods by the supplier (principal) to the DCA; 2. Further supply of goods by the DCA to the recipient; 3. Supply of agency services by the DCA to the supplier or the recipient or both; 4. Extension of credit by the DCA to the recipient. It is clarifi .....

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