TaxTMI 
TaxTMI 
2019 (10) TMI 1133
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....ion 97 of the CGST Act, 2017 and Section 97 of the KGST Act, 2017, in FORM GST ARA-01, discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Limited Company and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question:- Whether the "commission earned from auctioning of flowers is covered under entry no. 54(e) & (g) of Notification No.12/2017 - Central Tax (Rate) dated 28.06.2017 and entry no. 54(e) & (g) of Notification (12/2017) FD 48 CSL 2017 dated 29.06.2017? 3. The applicant furnishes the following facts relevant to the stated activity:- a. The applicant states that they are in the business of au....
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....cant has deployed "Dutch Auction" System in which the Digital Auction Clock runs in the decreasing order and the price per stem reduces from maximum to minimum. The unsold flowers would be reauctioned on the immediately next day after completing the auction of that day's flowers. Even after this, if they are unsold, they would be sent back to the growers with the delivery challan. 4.2 The applicant issues invoice in his name with the details of the lot and the receivables are deducted from that amount The amount due to the growers is distributed at the earliest. The collection of amount from the buyer is also done by the applicant. 5. Regarding the issue before the Authority, the applicant states that as under: 5.1 The activities c....
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.... above said Notification and it reads as under:- "agricultural produce" means any produce out of cultivation of plants and rearing of all life forms of animals, except rearing of horses, for food, fiber, fuel, raw materials or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market." The cut flowers are in the nature of agricultural produce as it is a produce out of cultivation of plants on which no processing is done. 5.4 A combined reading of the above makes it clear that the services by any APMC or Board or services by a commission agent for sa....
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....t facts. At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 6.1 In the subject matter the Office of the Commissioner of Central Tax, Bangalore-North has provided their views in the matter. Letter dated 30.04.2019 and the views expressed by the Assistant Commissioner of Central tax in letter dated 29.04.2019 have been examined. The view expressed by the aforesaid office is that the stated activity is not covered under SI. No. 54(g) of Notification No. 12/2017- Central Tax (Ra....
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....dent that an objective criteria is used to determine whether a particular principal-agent relationship falls within the ambit of the said entry or not. Thus, the key ingredient for determining relationship under GST would be whether the invoice for the further supply of goods on behalf of the principal is being issued by the agent or not. Where the invoice for further supply is being issued by the agent in his name then, any provision of goods from the principal to the agent would fall within the fold of the said entry. However, it may be noted that in cases where the invoice is issued by the agent to the customer in the name of the principal, such agent shall not fall within the ambit of Schedule I of the CGST Act. Similarly, wher....