Consignment Sales Agent (CSA) change in GST

[Avinash Agarwal]

Dear All,

As there used to be CSA in case of VAT regime where company used to transfer stock to CSA against F-form, where all the sale proceeding used to be transferred directly to company and CSA used to get commission.

However, now in GST it is understood that F-form format is waived off. All transfer of goods will be in the form of Sale & Purchase.

So, how do you see as the tax implication in such case for CSA agent who is receiving the goods and selling it for company. Since all transactions are done in CSA's TIN/GSTIN, how do we justify it.?

Should the company directly register themself in different state where they used to use CSA's TIN for transaction during VAT??

Or the CSA should continue use of CSA's GSTIN in GST regime for the company??

Please advise.

[YAGAY andSUN]

The answer of query is that in GST Regime its gone be tax on supply of goods and services. Assessee/Dealers/Service Providers need to enroll int GSTN. There would be levy of GST at each and every level and seemless credit would be allowed. Even CSA would need to get registration and pay tax on receipt of goods and charge tax for supply of goods.

[Ganeshan Kalyani]

Under VAT, CSA was registered by main dealer as additional place of business. No separate registration for VAT /CST was taken by CSA. In the same way under GST as well the main dealer would enrol by adding the CSA's address as additional place of business. CSA would not require to get separate registration. This is my view. Thanks.

[YAGAY andSUN]

However this is optional to show CSA's place as additional place of business. Further its Turnover will be added in your company's turnover.

[Ganeshan Kalyani]

It is better to show the additional place of business in the enrolment form.

[Prashant Asija]

Hi with reference to the abovce discussion we need to know the treatment on stock held by consignment agent

1. Either we will treat that as our stock and take the credit of import duty paid

2 or Consignment agent will claim 5.4% credit on the sales under transition rules.

Pleae advise on the treatment

AI Summary

GST on consignment sales: consignor can add agent as additional place of business or agent may register separately. GST treatment of consignment sales requires deciding whether the Consignment Sales Agent must obtain separate GST registration and account for tax on receipts and supplies, or whether the principal should enrol the agent's location as an additional place of business and include the agent's turnover in the principal's registration; transitional stock treatment and entitlement to import duty/input credit versus agent-claimed transitional credit remain open compliance issues.