TaxTMI 
TaxTMI 
2019 (8) TMI 1629
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....n provision of the Brokerage services/intermediary services in relation to sale and purchase of commodities mainly agricultural produce. In provision of Brokerage Services, the company sources the buyer and seller for each other's product and in turn-charges brokerage/ commission from both the parties. The applicant is mainly engaged in services related to sale and purchase of agriculture produce mainly Wheat, Maize & Pulses. The recipients of the services of the company are located Intra-State as well as Inter-state. 2.2 The agricultural produce is first cultivated by the farmer and it is sold in Market Committee notified area, managed under the aegis of State Government established under the Agriculture Produce Market Committee Act....
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....Act, "Outward Supply" in relation to a taxable person, means supply of goods or services or both, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other mode, made or agreed to be made by such persons in the course of furtherance of business; d. Section 2 (88) of GST Act says that "Principal" means a person on whose behalf an agent carries on the business of supply or receipt of goods or services or both; e. Section 2 (102) of GST Act reads: "Services" means anything other than goods, money and securities but includes activities relating to use of money or its conversion by cash or by any their mode, from one form, currency or denomination, to another form, currency or denomination for....
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....icultural produce. Nil Nil 4. Based on its submissions and interpretation of law, the applicant is of the view that: a. Broker is an intermediary and not an agent. b. Broker is dealing on principal to principal basis and does not supply goods on behalf of principal. c. Broker services had no relation with cultivation of plant and it merely helps in facilitation of purchase and sales. d. The services provided by the applicant is not covered in exemption notification and liable to charge the tax. 5. Question on which Advance Ruling is sought: 5.1 Whether the services of supplier are exempt in purview of exemption notification no 12/2017 (CT Rate) dated 28.06.2017. 6. Discussion: 6.1 The....
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.... on the business of supply or receipt of goods or services or both on behalf of another. Section 2(120) of the CGST Act reads: words and expressions used and not defined in this Act but defined in the Integrated Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act shall have the same meaning as assigned to them in those Acts. As per Section 2(13) of the IGST Act, intermediary means a broker, an agent "intermediary" means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or se....
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....he goods as desired by Mr. A, and asks the supplier (Mr. C) to send the goods and issue the invoice directly to Mr. A. In this scenario, Mr. B is only acting as the procurement agent, and has in no way involved himself in the supply or receipt of the goods. Hence, in accordance with the provisions of this Act, Mr. B is not an agent of Mr. A for supply of goods in terms of Schedule I. 6.4 The applicant has submitted that it is neither acting as an agent for the supplier nor for the buyer (recipient). The tax invoices are issued by the supplier in the name of the recipient. The applicant merely acts as a facilitator between the buyer and the recipient and charges its brokerage/ commission. It has nothing to do with the goods supplied or re....