GST on Commission

[RameshBabu Kari]

Dear Experts,

If registered person who is part of state govt, doing Commission business for the facilitation of trading of goods between two parties those parties might be registered or not. In such cases, trading of goods are in some cases fully exempt or fully taxable or partially exempt and partially taxable. How GST will applicable on trading of exempted goods or nil rated goods ? Is there any difference on commission on trading of exempt goods or taxable goods ? What are the GST applicability for the govt entity in this scenario ?

AI Summary

Intermediary services: commission for facilitating goods transactions is generally subject to GST, with limited exemptions.
Commission for facilitating trading of goods is treated as a service by an Intermediary under Section 2(13) of the IGST Act, and its taxability does not depend on whether the traded goods are exempt, nil rated or taxable; ordinarily such commission is liable to GST. Exceptions include business facilitator/business correspondent services and commission agent services for agricultural produce, which are notified as non taxable or exempt.