COMMISSION EARNED BY THE COMMISSION AGENT.

[Sadanand Bulbule]

Kindly clarify the status of commission amount earned by the commission agent on the sale of exempted agricultural produce like pulses on behalf of the principals? Is it taxable or not?

Please share the relevant provisions/notifications in this regard.

[KASTURI SETHI]

Pulses are not agriculture produce. Go through the decision of AAR Gujarat carefully (word for word). Read Para 9 also.

2018 (14) G.S.T.L. 112 (A.A.R. - GST) = 2018 (6) TMI 622 - AUTHORITY FOR ADVANCE RULINGS, GUJARAT IN RE : GURU COLD STORAGE PVT. LTD.

[Sadanand Bulbule]

Thank you so much Sir for quick clarification. 🙏

[Ganeshan Kalyani]

The advance ruling is aptly quoted by Sri Kasturi Sir. It clears all the doubts regarding taxable of cereals. I would save this ruling for my future reference. Thanks Sri Kasturi Sir.

AI Summary

Taxability of commission: commission on sale of pulses treated as taxable because pulses are not agricultural produce.
Commission earned by an agent on sale of pulses is subject to GST if pulses are not characterised as agricultural produce for exemption purposes; an advance ruling cited in the discussion treated pulses as outside the agricultural produce exemption, and on that basis commissions arising from such sales are taxable.