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.

AI Summary

GST Changes Impact Consignment Sales Agents: Registration, Tax Credits, and Elimination of F-Form Discussed A discussion on the implications of the Goods and Services Tax (GST) for Consignment Sales Agents (CSA) highlights changes from the previous VAT regime. Under GST, the F-form is eliminated, and transactions are now treated as sales and purchases. Participants discuss whether companies should register in different states or continue using the CSA's GSTIN. Some suggest registering the CSA's location as an additional place of business, while others debate the treatment of stock held by consignment agents and the application of tax credits. The need for CSA registration and tax obligations under GST is emphasized.