GST taxation of cardamom auction commission upheld as auction services, not exempt agricultural produce commission agent service.

Commission earned for conducting cardamom auctions was treated as taxable under GST because the applicant functioned as an auctioneer, not merely as a commission agent for sale of agricultural produce. The exemption for commission agents was construed strictly and applied only to the specified category, while auction-related activities such as pooling, grading, auction conduct, price discovery, billing and settlement supported classification as wholesale trade support services. The specific taxable entry in the GST rate notification was held to prevail over the general exemption, so the exemption was denied.

---

---

Issues: Whether the commission earned for conducting cardamom auctions is exempt as services provided by a commission agent for sale of agricultural produce, or is taxable as auction-related service under the GST rate notification.

Analysis: The applicant was licensed as an auctioneer under the Cardamom (Licensing and Marketing) Rules, 1987 and its activities included pooling, grading, storage, auction conduct, price discovery, billing, collection of sale proceeds and settlement with growers and traders. On that basis, the service was found to be that of an auctioneer and not merely that of a commission agent. The exemption for services by a commission agent for sale or purchase of agricultural produce was construed strictly and held applicable only to the specified category, not to auctioneers. The classification of services also supported the view that auction commission and sales commission fall under wholesale trade support services rather than agricultural support services, and the specific taxable entry under the GST rate notification prevails over the general exemption entry.

Conclusion: The commission received for conducting cardamom auctions is taxable under GST and does not qualify for exemption under the cited agricultural produce exemption.

---