COMMISSION AGENTS OF GARLIC - EXPEMTED GOODS

[Guest]

We are Commission agents of GARLIC which is exempted under GST bearing HSN code of 07032000.

We get good from Madhya Pradesh, Rajasthan & Gujurat from our clients on consignment & we sell it locally.

We charge commission per bag and lorry freight & godown expenses are all added in senders A/C by way of sale patti which we send them.

Under vat we used to show nil return in sales tax return wherein our purchase was 0 and sales was based on senders sale amount

My query is can we still keep filling return the same way & does our commission fall under the slab of GST as we deal only with Garlic & no other products. We are issuing sale bill with GSTIN of our customers too.

PLEASE HELP. THANK YOU

[SHIVKUMAR SHARMA]

You have to pay 18% GST on Commission received from Garlic Producer under service code 9961.

[Guest]

Garlic comes under exempted goods and under gst it states that any services relating to agricultural produce will be exempted & my source of income is commission I receive which will any way come under the purview of income tax

[Kishan Barai]

Do you issue invoice on commission Received ?? If no then you act as a pure agent , NO GST for you

[KASTURI SETHI]

See Heading No.9986 at serial no.54 (g) of notification no.12/17-Central Tax Rate dated 28.6.17. Stands exempted from GST

AI Summary

GST treatment of commission for exempt agricultural produce contested; taxation depends on service classification and invoicing practice. Issue: Whether commission on sales of exempt agricultural produce (garlic) is taxable under GST. Facts: agents sell consigned garlic locally, charge commission and pass expenses to consignors, issuing sale bills with consignors' GSTIN. Competing views: commission treated as taxable service under service classification versus exemption for services relating to agricultural produce and a notification entry; acting as a pure agent without invoicing may argue no GST. Determination depends on service classification, exemption wording, and invoicing practice.