PURE AGENT RECEIPTS IN GSTR 1, Goods and Services Tax - GST

[RAVI SAPRA]

How to show pure agent receipts in GSTR1 ?

Posts / Replies

[KASTURI SETHI]

JUST FOR ADDITIONAL KNOWLEDGE OF QUERIST

This is an extract from an article prepared by NACEN, Faridabad and available on CBEC's site.

"A pure agent concept is an important one for businesses as it has direct implications on the value of taxable service. It has direct bearing on the amount of GST charged on a particular supply. It also has bearing on the aggregate turnover of the supplier and, therefore, on calculating the threshold limit for registration. Whenever the intention is to act as a pure agent, care should be taken to ensure that the conditions specified for such pure agents and further conditions given in the valuation rules are also met so that only the real value of the service provided is subjected to GST."

[RAVI SAPRA]

All these systems are not so simple. Custom Agents and other persons getting receipts are raising common invoices for their services and also for services received as pure agent. In such cases if value of services received as pure agent are ignored than the issue will arise at the time of GSTR2 as combined invoices showing separate columns for taxable and non taxable receipts have been issued. Also MNC’s also deduct TDS on such pure agent receipts. If the figures shown in 26AS and in our Balance Sheet are different from one filed in GST returns than the notices are bound to come from the department.

[CS SANJAY MALHOTRA]

Mr. Ravi,

Experts have shared their opinions. To follow the same or not is your action step.

If you make payment on someone behalf, the same is not Supply as neither the Invoice is on you nor you have received services. This is not new concept, was available in Service Tax also and you must be following some criteria while submission of Service Tax Returns also.

Recovery of any payment made on someone's behalf appears as "Payment Advice" entry at the Bottom of Invoice and is no way part of Taxable Value and considered as Supply.

Check your accounting entries. You debit your Customers account and Credit Bank account. No Income / Expense is either Dr / Cr, then how will question of GSTR Returns Vs Annual Returns or Balance Sheet variances arises.

Try to respect views of all Experts in this forum as these types of advice on this platform is on FOC basis and none can have these even on payment of Professional charges.

[KASTURI SETHI]

Sh.CS Sanjay Malhotra Ji,. Sir, got your point.

[KASTURI SETHI]

It is my humble suggestion to all the querist visiting this forum that they must read profile of the concerned expert before expressing their views on the reply of the expert. It is in the interest of the querists and also time saving for experts as well as querists.

[subramanian vijayakumar]

I agree with Malhotra ji view

Healthy discussion

Thanks experts

[RAVI SAPRA]

I am thankful to all in making the discussion healthy and fruitful. I am obliged for all the contribution made in framing the opinion.

Once Again thanks to all.