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All QuestionsCategory: GST CompliancesTWO WHEELER COMMISSION AGENT
Profile photo of SUNIL MAHALESUNIL MAHALE asked 5 months ago


I am a two wheeler commission agent. I obtain and  display the two wheelers of TVS Company to my shop/place (situated outside the city)  which I receive from the Company’s  Main Dealer from nearby City without payment and without Invoice for the same and bring it self driven. Ones sales completed, TAX Invoice is issued by the Main Dealer in favor of Customer and payment is also received by Main Dealer in his account. In the end of the month, I raise separate GST Invoice to the Main Dealer for my Commission.  Does this process has any breach of law ? Kindly Guide madam.

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2 Answers
Profile photo of Nikhil ChopraNikhil Chopra answered 5 months ago

Hello Sunil,
As per your case,
You raise the tax invoices for your commission at the end of the month.
So there is no breach of law as per section 13 read with section 31 of the CGST Act 2017. 

Profile photo of Consultease AdministratorConsultease Administrator answered 5 months ago

How far the breach of law is related that we cant comment without looking into the complete set of information. Prima facie this arrangement is fine but clause 3 of schedule I will come into the picture Text of the clause is reproduced here. You will fall under the definition of agent.

3. Supply of goods—
(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.