TMI BlogPURE AGENT RECEIPTS IN GSTR 1X X X X Extracts X X X X X X X X Extracts X X X X ..... How to show pure agent receipts in GSTR1 ? - Reply By Ganeshan Kalyani - The Reply = In my view it should be shown in table 8 , exempted sale. However, i welcome views of my collegue experts on this please. - Reply By KASTURI SETHI - The Reply = Pl. elaborate your query. How you are pure agent ? What is actual service ? Are you eligible for exemption ? Do you fulfill the conditions of 'pure agent, in terms of GST law ? Valuation Rules ? All these aspects are to be examined first before replying to your query . - Reply By RAVI SAPRA - The Reply = Thanks for your contribution. My submission as desired is as under:- Pure Agent Services are neither covered under exempt supply nor under nil rated supply I become pure agen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as I pay custom duty or freight on behalf of my client. There is no markup in the price and I fulfill all the other conditions of Pure Agent. Rule 33 of CGST Rules 2017 clearly allows such receipts as pure agent receipts. My query is where to show pure agent receipts in GSTR 1 .As regards table 8, it shows only nil, exempt and non GST supply.Should we consider this as non GST supply As for as tally and other accounting software are concerned, they are showing as If the combined bill for taxable and non taxable supplies is made than it shows taxable supplies under taxable value column and includes pure agent receipts in invoice value In case separate invoices are raised for taxable and pure agent supplies, it ignor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es pure agent supplies in GSTR1. It leads to contradiction with respect to same issue of pure agent receipts. I will be pleased to give any other input if required for the same. - Reply By KASTURI SETHI - The Reply = Services of Pure agent such as CHA/broker, C F Agent etc . are taxable. So turnover of pure agent cannot be shown as exempted against Serial No. 6 or 8. Why it cannot be shown against serial No. 4 of GSTR-1 ? Have you paid GST or not ? Also read article of Sh.Vinod Chaurasia, an expert published in the 'Expert - Articles'. Title is 'Concept of Pure Agent'. Go through this article and, thereafter, you may seek clarification. There is no specific Column for 'pure agent'. It falls under, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Taxable Outward Supplies . - Reply By KASTURI SETHI - The Reply = Pure agent services are exempted in 'Works Contract Service/Construction Service' with conditions imposed. - Reply By YAGAY AND SUN - The Reply = Please go through the definition of Pure Agent and the concept would be clear to you regarding how to deal this aspect in returns. - Reply By RAVI SAPRA - The Reply = Read the article of Sh. Vinod Chaurasia. Accordingly my receipts falls under the category of pure agent. No where this article deals with showing of these receipts in GSTR1. As for as concept of pure agent, it is very clear. Only issue is with its presentation in GSTR1. - Reply By KASTURI SETHI - The Reply = Have you tried against serial no.4 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GSTR-1 Form ? - Reply By CS SANJAY MALHOTRA - The Reply = Your case is covered as Pure Agent. Do show the transaction in B2B if person is registered. Mention the Total Invoice value inclusive of Custom Duty Freight part, but exclude the same in Taxable Value as the expenses incurred as Pure Agent are excluded from Taxable Value. No need to show elsewhere. - Reply By RAVI SAPRA - The Reply = Dear Mr. Malhotra, This is working, if combined bills for service charges and pure agent receipts are raised. If separate invoices for pure agent receipts are raised which is also a common practice in this trade, the portal is not accepting such invoices of pure agent receipts unless we categorize it as nil, exempted or zero rated which is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot the factual position. If we enter it as a zero percent, than it includes in the taxable value at nil rate, which is also not correct. - Reply By CS SANJAY MALHOTRA - The Reply = Mr. Ravi, Amount received as Pure Agent is not part of Supply, hence even if you raise Invoice separately, then also the same shall not be placed anywhere in Table 8. - Reply By RAVI SAPRA - The Reply = Dear Mr.Sanjay, This way we will be dealing with the same issue in two ways. One where combined bills are raised, value as pure agent receipt is added in Invoice Value and where separate invoices are raised, the same is ignored in GSTR1 not being a part of GST supply. - Reply By CS SANJAY MALHOTRA - The Reply = In both cases, whatever approach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... you follow, pure agent service is nowhere reflected in taxable value under any table or head. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = I endorse the views of Shri Malhotra. - Reply By Ganeshan Kalyani - The Reply = Challenging. - Reply By KASTURI SETHI - The Reply = 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 l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imit 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. - Reply By RAVI SAPRA - The Reply = 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Reply By CS SANJAY MALHOTRA - The Reply = 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 Taxab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 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. - Reply By KASTURI SETHI - The Reply = Sh.CS Sanjay Malhotra Ji,. Sir, got your point. - Reply By KASTURI SETHI - The Reply = 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expert. It is in the interest of the querists and also time saving for experts as well as querists. - Reply By subramanian vijayakumar - The Reply = I agree with Malhotra ji view Healthy discussion Thanks experts - Reply By RAVI SAPRA - The Reply = 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. - PURE AGENT RECEIPTS IN GSTR 1 - Query Started By: - RAVI SAPRA Dated:- 3-1-2018 Goods and Services Tax - GST - Got 22 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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