Applicability of gst act
PURUSOTTAM PANDA
(Querist) 31 July 2017
This query is : Resolved
Respected Sir,
Distributor 'X' purchased goods from Company 'Y'. I received goods from 'X' and sold them to retailers. I deposit all cash collected on account of sales to 'X' in the evening. I got commission on the basis of my sales. My annual commission amounts to INR 87,600.00(approx.) though my daily average sales is INR 40,000.00 and consequently average annual sales comes to INR 1,46,00,000.00. Invoice is raised by 'X' on retailers. My name appears on the invoice as Sales agent.
Is it required to get me registered in GST Act? Whether I am a seller or Service Provider?
Please advise me.
M V Gupta
(Expert) 02 August 2017
The Act provides that any person who supplies taxable goods or services or both on behalf of other taxable persons whether as agent or otherwise, must register under the Act. For more details please refer to GST guidance Note on Principal and Agent Transactions at www..jiogst.com.
PURUSOTTAM PANDA
(Querist) 04 August 2017
Respected Sir,
Thanks for your reply. I need your advise on following matters:
If I am registered, then how can I file my return. Invoice is raised in the name of Retailer. So, all Input Tax Credit will go to him. I need to pay all Output GST without being able to adjust ITC. Is it justified to have printed Bill Books, maintain accounts and comply with GST formalities for just a minor monthly income of INR 7000.00 to 8000.00 only?
PURUSOTTAM PANDA
(Querist) 04 August 2017
Respected Sir,
Thanks for your reply. I need your advise on following matters:
If I am registered, then how can I file my return. Invoice is raised in the name of Retailer. So, all Input Tax Credit will go to him. I need to pay all Output GST without being able to adjust ITC. Is it justified to have printed Bill Books, maintain accounts and comply with GST formalities for just a minor monthly income of INR 7000.00 to 8000.00 only?
M V Gupta
(Expert) 05 August 2017
I feel you should refer to the Guidance note I have given reference or you may consult your CA.
