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TMI BlogScope of principal and agent relationship under Schedule I of MGST Act. 2017 in the context of del-credre agent.X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 issues in succeeding paras. 2. In commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 57/31/2018-GST dated 4th September, 2018, and Trade Circular No. 39T of 2018 dated 31st 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 under the ambit of agent. 2. Whether the temporary short- term transaction based loan extended by the DCA to the recipient (buyer), for which interest is charged by the DCA, is to be included in the value of goods bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 clarified that in cases where the DCA is an agent under Para 3 of Schedule I of the MGST Act, the temporary short-term transaction based credit being provided by DCA to the buyer no longer retains its character of an independent supply and is subsumed in the supply of the goods by the DCA to the recipient. It is emphasised that the activity of extension of credit by the DCA to the recipient would not be considered as a separate supply as it is in the context of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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