Consignment Agreement Format
Send goods to a consignee who sells them on your behalf and remits the proceeds less commission, while ownership stays with you.
What it is
In a consignment arrangement the owner of goods (the consignor) sends them to a consignee, who sells them on the consignor's behalf. Ownership stays with the consignor until the goods are sold to a customer, and the consignee earns a commission. The agreement records the goods, who holds title and bears risk while the goods are with the consignee, the commission, how often sale proceeds are remitted, accounts and stock reports, and the GST treatment.
When it is used
- Manufacturers selling through commission agents in other cities or States.
- Artisans and small producers placing goods with retailers on a sale-or-return basis.
- Exporters and importers using consignment stocks.
What the template covers
- Consignor and consignee details and GSTINs
- Goods, HSN code and title
- Consignee commission
- Remittance frequency and accounts
- Minimum sales commitment
- GST treatment, term and jurisdiction
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Agreement
Agreement Date; Place
Consignor
Consignor Name (Owner); Address; GSTIN
Consignee
Consignee Name (Seller); Address; GSTIN
Goods
Description of Goods; HSN Code; Title / Ownership
Commercial
Consignee Commission (%); Remittance Frequency; Minimum Sales Commitment (₹/month)
GST
GST Treatment
Term
Initial Term (months); Governing Jurisdiction
Stamp duty, registration and filing
Under GST, supply of goods by a principal to an agent who supplies them on the principal's behalf is treated as a supply even without consideration (Schedule I of the CGST Act), so the GST treatment must be worked out for each arrangement, including inter-State movement and e-way bills. The consignee's commission is a separate supply of services. Stamp duty depends on the State.
Generate the Consignment Agreement
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows? Contact SKAG and Associates
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Frequently asked questions
Is goods sent on consignment a sale?
No, there is no sale to the consignee because title stays with the consignor. The sale happens when the consignee sells to a customer.
Is GST charged when goods are sent to a consignment agent?
Where the agent issues invoices in its own name, the transfer is a deemed supply under Schedule I and GST applies. Check the facts of your arrangement.
Who bears the loss if goods are damaged at the consignee's premises?
The agreement should say. Usually the consignee is responsible for loss due to its negligence and must insure the goods.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.