Cooperative society exempt from GST on agricultural services & pulses; 5% GST on oilseeds. No TDS required.

The Authority for Advance Ruling (AAR) confirmed that a cooperative society is exempt from charging Goods and Services Tax (GST) on services provided for procuring agricultural produce. Outward supplies of pulses are exempt from GST, while oilseeds are subject to GST at a rate of 5%. The AAR also ruled that the society is not required to deduct Tax at Source (TDS) for services related to procurement of agricultural produce, gunny bags, transportation, insurance, and surveyors.

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Issues Involved:
1. Liability of Goods and Services Tax (GST) on services for procurement of agricultural produce.
2. GST applicability on outward supplies of goods and services.
3. Liability to deduct Tax at Source (TDS) for services of procurement of agricultural produce.
4. Liability to deduct TDS for services related to procurement of gunny bags, transportation, insurance, and surveyors.

Issue-wise Detailed Analysis:

1. Liability of Goods and Services Tax (GST) on Services for Procurement of Agricultural Produce:
The applicant, a co-operative society, provides services to NAFED for procuring agricultural produce. The applicant argued that these services are exempt from GST as they fall under the category of services by a commission agent for agricultural produce. The Authority for Advance Ruling (AAR) confirmed this, stating that the applicant's services are exempt under Serial No. 54 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. Thus, the applicant is not liable to charge GST on these services.

2. GST Applicability on Outward Supplies of Goods and Services:
- Pulses (Other than Branded): The AAR ruled that the outward supply of pulses (other than branded) by the applicant through Kray Vikray Sahakari Samiti is exempt from GST under Notification No. 02/2017-Central Tax (Rate) dated 28.06.2017.

- Oilseeds (Other than Seed Quality): The applicant is liable to charge GST on the outward supply of oilseeds (other than seed quality) through Kray Vikray Sahakari Samiti. This supply attracts GST at the rate of 5% (SGST 2.5% + CGST 2.5%) as per Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017.

3. Liability to Deduct Tax at Source (TDS) for Services of Procurement of Agricultural Produce:
The applicant questioned whether it is required to deduct TDS from payments to Kray Vikray Sahakari Samiti/RAJFED for services related to procurement of agricultural produce. The AAR concluded that the applicant does not fall under the categories specified in Section 51 of the CGST Act, 2017, and Notification No. 50/2018-Central Tax dated 13.09.2018. Therefore, the applicant is not liable to deduct TDS for these services.

4. Liability to Deduct TDS for Services Related to Procurement of Gunny Bags, Transportation, Insurance, and Surveyors:
Similarly, the applicant is not required to deduct TDS from payments to RAJFED for services related to procurement of gunny bags, transportation, insurance, and surveyors. The AAR ruled that the applicant does not meet the criteria specified in Section 51 of the CGST Act, 2017, and Notification No. 50/2018-Central Tax dated 13.09.2018, and thus, is not liable to deduct TDS for these services.

Conclusion:
The AAR provided a comprehensive ruling on all issues raised by the applicant. The applicant is exempt from charging GST on services provided as a commission agent for agricultural produce. Outward supplies of pulses are exempt from GST, while oilseeds attract GST at 5%. The applicant is not liable to deduct TDS for services related to procurement of agricultural produce or other associated services such as gunny bags, transportation, insurance, and surveyors.

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