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TMI Blog2019 (11) TMI 1715X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, is corresponding to the representative character identified in the definition of agent under the Indian Contract Act, 1872. The said circular further clarifies that a key ingredient for determining whether the agent is wearing the representative hat and is supplying or receiving goods on behalf of the principal would be whether invoice for further supply or goods on behalf of the principal is being issued by the agent or not. Since, a commission agent 'Kachha Arhtiya' supplies goods to the buyers against 'Form I' as prescribed under the APMC Act of the State, vide which the titled of goods is passed on to the buyer against an agreed upon rate of the goods. The commission agent also charges its commission and other incidental charges through the said Form I under the APMC Act. The said Form I issued under the APMC Act is therefore sufficient test to hold that the commission agent i.e. 'Kachha Arhtiya' is supplying goods on behalf of agriculturists and is covered under the definition of 'agent' as contained in sub Section (5) of Section 2 of the CGST/HGST Act. There is no merit in the argument of the appellant that he cannot be treated as re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and Services Tax Act, 2017 read with corresponding notification No. 43/2017, dated 14.11.2017 issued under the Central Goods and Services Tax Act, 2017 read with Corresponding notification No. 43/2017, Dated 14.11.2017 issued under the Central Goods and Services Tax Act, 2017. After notice and opportunity, the Advance Ruling Authority pronounced the impugned ruling on 30.08.2018 against which the present appeal has been filed by the appellant. Pleadings of the Appellant: 1. The Advance Ruling issued by the Ld. Advance Ruling Authority is against the law and facts. 2. The applicant had applied for applicability of the notification No. 121/ST-2, dated 14.11.2017 and vis-a-vis which whether the commission agent may be treated as the recipient. However the Ld. AAR had instead adjudicated the matter on the basis of turnover and treated the turnover made by the principal as turnover made by the commission agent and thus made him liable for registration. 3. The provisions of CGST/HGST Act and the definition of turnover as contained therein, nowhere prescribe that the person transferring the property in goods through issue of forms prescribed by some other Acts will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnover made by the commission agent thereby making him liable for registration. In support of this he has referred to the circular dated 04.09.2018 issued by the CBIC wherein the term agent has been clarified showing that a commission agent who issues invoice is covered under the category provided in schedule 1 and else not. The appellant has argued that the provisions of CGST/HGST Act and the definition of turnover as contained therein, nowhere prescribe that the person transferring the property in goods through issue of forms prescribed by some other Acts will make that person liable for registration because that invoice will be considered as his turnover which is against the law and established practice. The appellant has taken a plea that the Advance Ruling Authority has ruled that commission agent is liable for reverse charge without discussing whether he can be deemed as recipient. In view thereof, the appellant is not liable for registration because he is issuing only form I to the recipient and the same cannot be taken at par with the invoice under the GST Act, 2017. With these arguments the appellant has prayed that the Advance Ruling dated 30.08.2018 issued by Advance Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission agent shall be liable for registration. In reference to the above, the provisions of Sections 7(l)(c) of the CGST/HGST Act are relevant. The provisions of the Section 7(1) clause (c) provide that the activities specified in schedule I shall be treated as supply under GST, even if made without consideration. One such activity, as detailed in Para 3 of schedule I, is in relation to the activities between the principal and his agent. The scope of principal-agent relationship in the context of Schedule I of the CGST Act is clarified by circular No. 57/31/2018-GST dated 04th September, 2018 (to be read with the corrigendum dated 05 th November, 2018). As clarified vide above circular, the crucial component for covering a person within the ambit of the term 'agent', as contained in sub Section (5) of Section 2 of the CGST Act, is corresponding to the representative character identified in the definition of agent under the Indian Contract Act, 1872. The said circular further clarifies that a key ingredient for determining whether the agent is wearing the representative hat and is supplying or receiving goods on behalf of the principal would be whether invoice for furth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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