Sep 16, 2018
Clarification regarding the scope of principal-agent relationship under GST Act
The Central Board of Indirect Taxes and Customs Vide Circular No. 57/31/2018-GST has clarified the following:
1) If the invoice for further supply is issued by the agent in his name, then such services will be treated as the services provided by the agent on behalf of the principal and hence, the agent is required to obtain registration mandatorily as required by Section 24 of CGST Act.
2) However, if the agent issues an invoice in the name of the principal, such service shall not be treated as a service provided by the agent to the principal and hence, the agent shall obtain GST registration .....