TaxTMI 
TaxTMI 
2025 (7) TMI 191
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.... Board's schedule, in accordance with the Cardamom (License and Marketing) Rules, 1987, and subsequent amendments. 2. At the outset, it is noted that the provisions of the Central Goods and Services Tax Act, 2017 (herein after referred to as "CGST Act") and the Kerala State Goods and Services Tax Act, 2017 (herein after referred to as "KSGST Act") are the same except for certain specific provisions. Accordingly, any reference herein after to the CGST Act, Rules and Notifications shall also include the corresponding provisions under the KSGST Act, Rules and the Notifications issued there under. 3. The applicant has sought an advance ruling under section 97(1) of the CGST/KSGST Act, 2017 on the question of applicability of GST on th....
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....urisdictional officer. The officer submitted that the applicant performs functions characteristics of an auctioneer rather than a commission agent. Therefore the officer opines that the services provided do not fall under Entry No. 54 (g) of Notification No. 12/2017 CT (Rate) and are not eligible for exemption and the commission earned is taxable under GST. 6. Personal hearing The applicant was granted a personal hearing on 02/04/2025. Shri. Edwin Joseph John, Partner of the applicant firm appeared and reiterated the contentions stated in the application. He requested that a ruling be issued on the basis of the written submissions and the oral representations made during the hearing. 7. Discussion and conclusion. 7.1 We have exa....
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....ructure such as warehouses and auction centres. 7.3 As cardamom auctioneers who are granted license by the Spices Board under Cardamom (Licensing and Marketing) Rules of 1987, the applicant oversees the process of facilitating the sale and distribution of cardamom. Cardamom growers and traders bring the cardamom to auction centres, where sorting and grading procedures ensure the quality and diversity of the lots available for bidding, a process called pooling. In case of e-auction, through logins provided by Spices Board, the auctioneer orchestrates the bidding process, buyers through their logins provided by Spices Board bid for their desired cardamom lots, based on the samples provided by the auctioneer at the auction centre. 7.4 Go....
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.... issue raised in this application. 7.5 The applicant claims that they fall under the definition of a "commission agent" and seeks exemption under Entry Number 54(g) of Notification Number 12/2017(CGST Rate) dated 28.06.2017. Entry Number 54(g) provides that services by way of "services by any Agricultural Produce Marketing Committee or Board or services provided by as commission agent for sale or purchase of agricultural produce." 7.6 Sub-section 5 of section 2 of the CGST Act 2017 and corresponding section of the KSGST Act, it provides that:- "agent" means a person, including a factor, broker, commission agent, arhatia, del credere agent, and auctioneer or any other mercantile agent, by whatever name called, who carries on t....
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....r crops and livestock to initial buyers, such as traders, wholesalers, or processing units. The commission agent appearing in Entry 54(g) has to be understood with reference to a primary agricultural market where the farmers sell their produce through a commission agent to wholesalers generally in as-is where-is condition. But an auctions house, as stated paras 7.2, 7.3 and 7.4 above, caters to both farmers and traders, provides a wide range of services for better price discovery than what is provided by a conventional commission agent. 7.11 As regards the eligibility to the exemption under S1.No 54(g) of Notification No 12/2017 Central Tax (R) dated 28.06.2017, it is seen that the exemption is available to the services provided by a com....
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....and treating of seeds to be marketed; ii. post-harvest crop services such as preparation of crops for primary markets, cotton ginning services; iii. Other support services to crop production like tilling of fields preparatory to planting; planting, cultivation and fertilization of crops; spraying, including from the air; iv. pest control for agriculture; trimming of fruit trees and vines; transplanting and thinning of crops; harvesting; v. provision of agricultural machinery with crew and operators; operation of irrigation systems for agricultural purposes; vi. other services necessary for agricultural production; Crop production services on inputs owned by others like operation of a crop product....