COMMISSION AGENTS OF ONIONS AND POTATOES - EXEMPTED GOODS, GST

[V Prasad]

We are commission agents of onions and potatoes which are exempted under GST bearing HSN Codes of 07031010 and 07101000 respectively.

Do we have any limit on the exemption of commission received under GST Act?

Thank You

[KASTURI SETHI]

No limit at all. Both fall in the definition of agriculture produce. So purchase and sale of both as a commission agent exempted from GST vide Notification No.12/17-Central Tax dated 28.6.17 as amended (Serial No.54(g) refers). It is exempted supply. However, Seed is out of definition of ' Agriculture'.

[Kishan Barai]

Moreover Export Commission agent would be exempted as they are considered as a pure agent, so even they have non agri products, still there is no cause of worry.

[Ganeshan Kalyani]

agricultural produce is out of GST.

[Ganeshan Kalyani]

I mean to say it is exempted from GST.

[KASTURI SETHI]

Answer to the query is complete here. Supply of Service as commission agent is taxable unless specifically exempted. I mean to say supply of goods and supply of service are both different. If supply of goods is exempted from GST, even then supply of service as commission agent can be taxable unless specifically exempted. Just for knowledge sake. However, in the above case specific notification exists.

[Kishan Barai]

Respected Kasturi Sir, according to my view Comission agent would not be charged GST for any products because invoice would be issued by other for them it would be chargable.

[V Prasad]

Thank You All

[KASTURI SETHI]

Sh.Kishan Barai Ji,

I agree with you in toto. I am just saying specific notification is required for exemption to commission agent as provided in the present case.

[V Prasad]

Is the exemption applicable if we act as both traders (sales and purchases) and commission agents of onions and potatoes?

Thank You

[KASTURI SETHI]

Yes. Exemption is available to both types of supply simultaneously provided that it is mentioned in application form for registration accordingly.

AI Summary

GST exemption for agricultural produce protects commission income on onions and potatoes from tax when specifically notified. GST exemption covers commission agents' purchase and sale of onions and potatoes as agricultural produce, with no monetary limit on exempt commission receipts; seed is excluded. Commission services are generally taxable unless a specific notification renders them an exempt supply, export commission agents may qualify as pure agents, and the exemption can apply concurrently to traders and commission agents if registration specifies both activities.