GST for agriculture commission agent on ecommerce market place

[Jishnu Roy]

Hi,

We are running a ecommerce market place for fresh vegetable and fruit. We are serving as commission agent. Invoicing end customers, accepting payment, passing the payment to farmers after deducting commission. Please let me know whether GST will be at all applicable, if yes at what rate.

Thanks in advance

[KASTURI SETHI]

It is exempted. See Notification No.12/17-CT(Rate) dated 28.6.17. Serial No.54 (g) refers.

[Ganeshan Kalyani]

Yes, the service is exempt.

Sr. no. 15(g) of notification 12/2017-CTR referes as "services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce."

[Ganeshan Kalyani]

Please read as 54 instead of 15. wrongly posted.

AI Summary

Agricultural commission agent service exempt from GST on marketplace transactions, so commission-only activity not subject to tax. Commission agent services for sale or purchase of agricultural produce supplied via an e commerce marketplace - where the operator invoices customers, accepts payments and remits proceeds to farmers after deducting commission - are exempt from GST under the exemption entry for commission-agent services relating to agricultural produce.