COMMISSION AGENTS OF GARLIC - EXPEMTED GOODS

[Asked by 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.

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.