TaxTMI 
TaxTMI 
2018 (11) TMI 399
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....in business activities'. The questions are as follows.. 1. Will GST be applicable on sale of tobacco leaves received from farmers made by Commission Agent in an auction and his turnover is less than Rs. 20 Lakh? 2. In case, there is GST in the above situation, who has to pay the tax? 3. Will reverse charge provisions applicable for tobacco leaves or not? 4. Who has to pay GST when commission agent sell the tobacco leaves received from trader in an auction? Can commission agent collect GST from buyers and pay or not? 5. The Commission Agent receives tobacco from farmers and sell them within the state. He takes commission from farmers for his services and it is less than Rs. 20 Lakh in a year. Will the Commission Agent is liable to collect GST in this situation? 3. In the light of above, the application has been forwarded to both the jurisdictional officers (State Tax & Central Tax) to offer their remarks as per the Sec. 98(1) of CGST / APGST Act'2017, and requested for their remarks and also for relevant records. In response, the jurisdictional officer i.e Assistant Commissioner(ST), Indrakeeladri Circle, No. I Division, Vijayawada offered their remarks through an ....
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....ch as procuring tobacco leaves from farmers as well as from traders and acting either as commission agent or as seller as the case may be. 2. The applicant has filed an application in Form GST ARA-01, dated 14.03.2018, for seeking advance ruling on 'tax liability for certain business activities'. The questions are as follows.. 1. Will GST be applicable on sale of tobacco leaves received from farmers made by Commission Agent in an auction and his turnover is less than Rs. 20 Lakh ? 2. In case, there is GST in the above situation, who has to pay the tax? 3. Will reverse charge provisions applicable for tobacco leaves or not? 4. Who has to pay GST when commission agent sell the tobacco leaves received from trader in an auction? Can commission agent collect GST from buyers and pay or not? 5. The Commission Agent receives tobacco from farmers and sell them within the state. He takes commission from farmers for his services and it is less than Rs. 20 Lakh in a year. Will the Commission Agent is liable to collect GST in this situation? Section 2(5) "agent" means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any ot....
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....idental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services; (d) interest or late fee or penalty for delayed payment of any consideration for any supply: and (e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments. Explanation.-For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy. After due verification of the material on record i.e copies of invoices raised by the applicant on receipt of the goods towards the owner of the goods along with the letter of the owner(farmer) of the goods, and the invoice raised against the recipient of the goods (trader), the following ruling is issued accordingly. Issue. No. 1 Will GST be applicable on sale of tobacco leaves received from farmers made by Commission Agent in an auction and his turnover is less than Rs. 20 Lakh? Ruling : GST is not applicable on, rece....
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....also referred as an applicant), having GSTIN:37BIWPS7726L1Z2 are commission agents dealing with tobacco leaves. The applicant is a dealer receives tobacco from farmers and traders and sell them in an auction and takes commission his services. The applicant has raised following questions before the Authority for Advance Ruling: 1. Will GST be applicable on sale of tobacco leaves received from farmers made by Commission Agent in an auction and his turnover is less than Rs. 20 Lakh? 2. In case, there is GST in the above situation, who has to pay the tax? 3. Will reverse charge provisions applicable for tobacco leaves or not? 4. Who has to pay GST when commission agent sell the tobacco leaves received from trader in an auction? Can commission agent collect GST from buyers and pay or not? 5. The Commission Agent receives tobacco from farmers and sell them within the state. He takes commission from farmers for his services and it is less than Rs. 20 Lakh in a year. Will the Commission Agent is liable to collect GST in this situation? 2.1 I have gone through the facts of the case as given by the applicant i.e. the applicant is commission agent dealing with tobacco leaves....
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....ich does not alter its essential characteristics but makes it marketable for primary market. Undoubtedly, tobacco leaves are agricultural produce and therefore, a commission agent dealing in sale and purchase of tobacco leaves shall be exempted from GST. 2.3 In my view and understanding, the above NIL rate of GST on services provided by a commission agent for sale and purchase of agricultural produce is irrespective of who is the principal i.e. whether it is a farmer or a trader. As long as the applicant works as a commission agent for sale and purchase of tobacco leaves, his supply of service shall be exempted vide above referred Notification. 3. It would be pertinent for me discuss another entry in the same Notification 11/2017-Central Tax (Rate), dated 23.06.2017. Sl.No. 5 having 9% rate of CGST (18% GST). The same reads as: "Services in wholesale trade. Explanation-This service does not include sale or purchase of goods but includes: Services of commission agents, commodity brokers, and auctioneers and all other traders who negotiate whole sale commercial transactions between buyers and sellers, for a fee or commission' Services of electronic whole sale ....