Classification of Supply — Authority for Advance Ruling —– Taxability of Del Credere Agent -- The applicant a Del Credere Agent (DCA) of supplier of Goods. The applicant takes order from the customers and places these orders with the Principal i.e actual supplier of goods to customers and receiver of payments. Collection of payment from customers is the responsibility of DCA. DCA is allowed to place orders of the customers. At the end of the month, for the orders booked through DCA and goods supplied by the principal, DCA gets the commission from principal for which DCA raises invoices on the principal along with GST. Applicant has sought ruling as to whether the amount passed on to the customer by DCA on account of the early payment before credit period allowed by principal, amounts to any supply, then who is the supplier and receiver in the transaction. If yes, what will be the classification of such Supply and applicable GST Rate, whether the supply is exempted from GST under Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017. If GST is charged whether the dealer/DCA can take credit of the ITC of the GST charged on such supply considering the fact that dealer has outward supply.
Held that:- The Hon’ble Authority for Advance Ruling held the additional bonus passed on by the applicant (DCA) to the customer, is not in nature of a supply in accordance with GST Act, 2017. Since, the said transaction is not a supply by the customer, invoice cannot be raised/ issued by the customer and if any amount passes on to the DCA in any manner, the DCA is not entitled to take ITC of the said amount passed on by the customer.K.K. Polymers [2018] 5 TAXLOK.COM 013 (AAR-RAJASTHAN)