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Principals and auctioneers of tea, coffee, rubber, and similar goods may maintain books of accounts for additional places of business at their principal place of business. The principal or auctioneer must inform the jurisdictional proper officer in writing about this location change. Both the principal and the auctioneer must declare the storage warehouses as additional places of business. Buyers must also declare the warehouses as additional places of business if they store auctioned goods there. The principal or auctioneer remains eligible for input tax credit if they satisfy other provisions of the Act and rules. This rule applies when the auctioneer claims input tax credit for supplies received from the principal before the auction and the goods move only through auction.
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F. No. 349/58/2017-GST Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs GST Policy Wing
New Delhi, dated $21^{\text{st}}$ December, 2017
To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All) The Principal Director Generals / Director Generals (All)
Madam/Sir,
Subject: Issues in respect of maintenance of books of accounts relating to additional place of business by a principal or an auctioneer for the purpose of auction of tea, coffee, rubber etc.- regarding
Various communications have been received regarding the difficulties being faced by a principal and an auctioneer in relation to maintaining books of accounts at each and every additional place of business related to stock of goods like tea, coffee, rubber, etc. meant for supply through an auction. Therefore, in exercise of the powers conferred under section 168 (1) of the Central Goods and Services Tax Act, 2017, for the purpose of uniformity in the implementation of the Act, it has been decided to clarify this matter.
As per the first proviso of section 35(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as 'the CGST Act') both the principal and the auctioneer are required to maintain the books of accounts relating to their additional place(s) of business in such places. It has been represented that both the principal as well as the auctioneer may be allowed to maintain the books of accounts relating to the additional place(s) of business at their principal place of business itself.
The issue has been examined. In exercise of the powers conferred under section 168 (1) of the CGST Act, for the purpose of uniformity in the implementation of the Act, it is hereby clarified that -
It is further clarified that this Circular is applicable to the supply of tea, coffee, rubber, etc. where the auctioneer claims ITC in respect of the supply made to him by the principal before the auction of such goods and the said goods are supplied only through auction.
It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
Difficulty, if any, in implementation of the above instructions may please be brought to the notice of the Board.
Hindi version would follow.
(Upender Gupta) Commissioner (GST)
