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

Taxability of commission and freight under GST: such charges are taxable and input tax credit is generally available.
Commission and freight charged for consignment agent services are taxable under GST; intra state supplies attract CGST/SGST and inter state supplies attract IGST. Input tax credit on these costs is generally available to the recipient where the final product is taxable. Principal-agent transactions are treated as separate taxable supplies, and draft provisions envisage IGST paid by the sending unit with credit utilisation in the sequence IGST then CGST then SGST, prompting likely changes to storage, commission structures, and liquidity management.