commission agent - pure agent

[Richa Goyal]

I am working as an agent and raising a bill as below

service purchased as pure agent: 60000

gst on pure agent @5% 3000

commission 30000

gst @18% 5400

Total 98400/-

Question: Invoice of ₹ 63,000/- for services as a pure agent has been raised on me and I am entitled to take credit for the same. Do I show the amount as a pure agent as 63,000/- or of only ₹ 60,000/- .

Kindly guide.

AI Summary

Pure agent treatment: intermediary margins excluded from taxable value; GST applies only on commission and not on principal costs.
A pure agent must act for and on behalf of the principal without becoming owner or adding margin; amounts paid as a pure agent are excluded from the agent's taxable value and are not subject to GST, while GST is chargeable on the agent's commission. If an intermediary purchases and resells (as with many travel-package transactions), the arrangement likely fails the pure agent test and the agent's taxable value and GST treatment must reflect the reseller nature rather than pure-agent exclusion.