Scope of principal and agent relationship under Schedule I of APGST Act, 2017 in the context of del-credre agent

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........................................ {Corresponding central circular no.57/31/2018-GST dated 4th September}, various representations have been received from the trade and industry, as well as from the field formations regarding the scope and ambit of principal agent relationship under GST in the context of del-credre agent (hereinafter referred to as "DCA"). In order to clarify these issues and to ensure uniformity of implementation across field formations, the Chief Commissioner, in exercise of his powers conferred under section 168 (1) of the Andhra Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as "APGST Act") hereby clarifies the issues in succeeding paras. 2. In commercial trade parlance, a DCA is a selling agent ....

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....esponding central circular no. 57/31/2018-GST dated 4th September, 2018}, whether or not the DCA will fall under the ambit of agent under Para 3 of Schedule I of the APGST Act depends on the following possible scenarios: • In case where the invoice for supply of goods is issued by the supplier to the customer, either himself or through DCA, the DCA does not fall under the ambit of agent. • In case where the invoice for supply of goods is issued by the DCA in his own name, the DCA would fall under the ambit of agent. 2 Whether the temporary short-term transaction based loan extended by the DCA to the recipient (buyer), for which interest is charged by the DCA, is to be included in the value of goods being supp....