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 made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service and 

• The supplies in the form of goods or services procured by the pure agent from the third party are in addition to the services he supplies on his own account. 



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