GST on Commission

[Rajesh Kumar]

Sir/Madam

If a government department purchases wheat , mustard and other agricultural products through authorized agents available in Anaj Mandi and pays the value of goods directly in the farmers account . In this process that government department pays commission to that agents.
My question is whether that commission agents are liable to GST on the amount received as commission?

[KASTURI SETHI]

Answer is NO. See Board's Circular no.57/31/2018-GST dated 4.9.18 (Para no.9 illustration scenario.4) and corrigendum issued vide CBEC/20/16/04/2018-GST dated 05.11.18. Pl. go through circular thoroughly.

[Shilpi Jain]

Services provided by commission agents in respect of agricultural produce buying and selling is exempt

AI Summary

Commission agent services exempt: commission received for facilitating agricultural produce sales attracts no GST when payment goes to farmers.
Commission paid to agents for procuring agricultural produce where the government purchases through authorized agents and pays farmers directly is not liable to GST; services of commission agents in respect of buying and selling agricultural produce are exempt, with administrative circular guidance cited for illustrative clarification.