TaxTMI 
TaxTMI 
2019 (8) TMI 1629
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....ntermediary 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 (APMC). As per the said Act, the agricul....
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....y 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 which separate consideration is charged; f. Relevant Entry No. 54 of Notifica....
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.... 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 applicant firm Mcdonald Pelz Global Commodities India Private Limited is engaged in provisions of brokerage/ intermediary services in relation to sale and purchase of commodities mainly agriculture prod....
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....rated 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 services or both or securities on his own account. Section 2 (24) of the IGST Act reads: words and expressions used and not defined in this Act but defined in the Central Goods and Services Tax Act, the Union Ter....
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.... 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 received. The nature of services provided by the applicant is identical to scenario 1 discussed above and as such the applicant is not a commission agent in view of the conjoint reading of Section 2 (5) of the CGST Act, 2017 ....