Commission and freight role in GST

[RAM SHARMA]

Dear Experts,

We are manufacturer of exciasable goods and selling our goods through our various consignment agent in all over india against form F. We are providing 3% commission and freight to our consignment agent for selling our goods and availing service tax cenvat on such commission and freight up to the consignment agent warehouse. I would like to know your opinion in this regard after implementation of GST impact.

Thanks & Regard

AI Summary

GST Reform: Commission and Freight Now Taxable; Input Tax Credit Available. Stock Transfers Impact Business Liquidity Strategy. A manufacturer inquired about the impact of GST on commission and freight for goods sold through consignment agents across India. Responses highlighted that under GST, traditional forms like C/D/E-1/F will be abolished, and transactions will be taxable at every stage, allowing input tax credit (ITC) against tax payable. Commission and freight will be subject to CGST/SGST for intra-state and IGST for inter-state transactions. The business strategy may change due to GST payments on stock transfers, affecting liquidity. The tax on stock transfers aims to provide immediate liquidity to the government by preponing tax collection.