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TMI BlogSupply Includes Without Consideration - Para 3 of Schedule I Read with Section 7(1)(c)X X X X Extracts X X X X X X X X Extracts X X X X ..... ply. [sec. 7(1)(c) of CGST Act.] Supply of goods- by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal, will be subject to GST, even if there is no consideration-para 3 of Schedule I of CGST Act. Note - Supply of services between principal and agent not fall under this para 3 of Schedule I of CGST Act. Registration Provision The agent is mandatorily required irrespective of their turnover. It may noted that as per section 24(vii) of the CGST Act, person who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise, are not eli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charge tax on RCM basis on the supply of raw cotton. In order to determine whether a particular principal and agent are fall within ambit of para 3 of Schedule I of CGST Act. (1) Where agent shall invoice issue, for the further supply invoice Invoice issued by agent in his name then agent shall be covered under para 3, Schedule I, Example 3:- Mr. Anil , an artist, appoints M/s Ram (auctioneer) to auction his painting. M/s Ram arranges for the auction and identifies the potential bidders. The highest bid is accepted and the painting is sold to the highest bidder. The invoice for the supply of the painting is issued by M/s Ram on the behalf of Mr. Anil but in his own name and the painting is delivered to the successful bidder. In this scenari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sells agricultural produce by utilizing the services of Mr B who is a commission agent as per the Agricultural Produce Marketing Committee Act (APMC Act) of the State. Mr B identifies the buyers and sells the agricultural produce on behalf of Mr. A for which he charges a commission from Mr. A. As per the APMC Act, the commission agent is a person who buys or sells the agricultural produce on behalf of his principal, or facilitates buying and selling of agricultural produce on behalf of his principal and receives, by way of remuneration, a commission or percentage upon the amount involved in such transaction. In cases where the invoice is issued by Mr. B to the buyer, the former is an agent covered under Schedule I. However, in cases where ..... X X X X Extracts X X X X X X X X Extracts X X X X
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