Del credre agent classification determines whether interest on buyer credit is included in the transaction value of goods under GST. Whether a del credre agent is an agent under Para 3 of Schedule I depends on invoicing: if the supplier invoices the customer (directly or through the DCA) the DCA is not an agent; if the DCA invoices in his own name the DCA is an agent. If not an agent, short term credit by the DCA is an independent financial service and its interest is not part of the supplier's goods value. If an agent, the extension of credit is subsumed into the goods supply and the interest must be included in the goods' transaction value.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Del credre agent classification determines whether interest on buyer credit is included in the transaction value of goods under GST.
Whether a del credre agent is an agent under Para 3 of Schedule I depends on invoicing: if the supplier invoices the customer (directly or through the DCA) the DCA is not an agent; if the DCA invoices in his own name the DCA is an agent. If not an agent, short term credit by the DCA is an independent financial service and its interest is not part of the supplier's goods value. If an agent, the extension of credit is subsumed into the goods supply and the interest must be included in the goods' transaction value.
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