Commission on agriculture primary market

[Ajit Kinikar]

Sir

I am commission agent in agriculture market In sangli (Maharashtra) .Working under law of agriculture market committee.

I sold jagrry and turmaric behalf of farmar.i give bill (invoice) to buyer .As per rula of government of maharashtra I charge commission to buyer.ThisCommission charge in bill.

In our Case buyer give payment to me and I give payment to farmar.

Naw what is the GST rate of this transition?

Can agriculture commission is under Gst?

[Himansu Sekhar]

Please look into SL.no 54(g) of notf.no 12/17,it may work for you

[KASTURI SETHI]

Jaggery falls under HSN code 1701 and is exempted from GST. Turmeric (Processed) falls under HSN code 0910 3030 and attract GST @ 5%. Both are manufactured products. These are not in natural form. These cannot be termed as agriculture produce.Fresh turmeric and dried turmeric falls under 0910 3010 and 0910 3020 respectively. Moreover, processes of both the products do not find place in Serial No.54 (c) of Notification No.12/17-CT(Rate) dated 28.6.17. So no exemption from GST is available on account of agriculture produce. GST @18% on the amount of commission is payable.

[Rakesh Bansal]

Sir,

Notification No.12 pertains to the exemption of tax on services only.

My questions:

1. Whether this exemption could be extended to goods also?

(I) If yes, under which clause?

(ii) If no, who will be liable for the tax?

2. Whether the value of agriculture commodity sold by commission agent on behalf of farmer will be considered to compute thresh hold limit?

AI Summary

GST on commission charges for agricultural market sales: commission generally taxable while processed goods may lose agricultural exemption. Commission agents' GST exposure depends on product classification and exemption scope: goods that are processed and fall under taxable HSN headings are subject to GST, while genuinely exempt agricultural produce remains outside GST. Commission charged by the agent constitutes a taxable service in the absence of a specific service exemption and must be included in tax calculations and threshold assessments unless an applicable exemption applies.