CBIC clarifies interest treatment for short term loans extended by ‘Del-credere’ agent

CBIC issues clarifications relating to scope of principal and agent relationship under Schedule I of CGST Act, 2017 in the context of del-credere agent (DCA) to ensure uniformity of implementation across field formations; Clarifies that only where the invoice for supply of goods is issued by the DCA in his own name, the DCA would fall under the ambit of agent; In cases where DCA is not an agent, short term transaction based loan extended by DCA to buyer shall be considered a ...