Pure Agent under GST
Pure Agent under GST Pure agent • Agent works as a mediator. • Takes supply of goods or services on behalf of principal. • Incurs and receives expenditure on behalf of principal. CGST Rule 33 says that a “Pure agent” means: - • A person who enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both • Neither intends to hold or holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply. • Does not use for his own interest such goods or services so procured as pure agent. • Receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account. Conditions • The supplier acts as a pure agent of the recipient of the supply when he makes the payment to the third party on authorization by such recipient. • The payment