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2018 (11) TMI 399 - AAR - GSTLevy of GST - sale of tobacco leaves received from farmers made by Commission Agent in an auction - turnover is less than ₹ 20 Lakh - liability to pay GST - Reverse charge mechanism - liability to pay GST when commission agent sell the tobacco leaves received from trader in an auction - Commission Agent receives tobacco from farmers and sell them within the state - value of a supply of goods and/or services. Held that:- The services provided by a commission agent for sale or purchase of agricultural produce is having NIL rate of GST - Undoubtedly, tobacco leaves are agricultural produce and therefore, a commission agent dealing in sale and purchase of tobacco leaves shall be exempted from GST. 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. Sl.No. 5 of referred Notification is for services of Commission agents. which is peged at 18% GST (9+9). However, applicant being a Commission Agent dealing in sale and purchase of agricultural produce (tobacco leaves) - Sl.No. 24 of the Notification having NIL rate of Tax is applicable on them. Registration - Held that:- Section 23 of CGST Act stipulates that a person who is exclusively supplying exempted services shall not be required to take Registration. Ruling:- As per entry No:24 Notification No:11/2017-Central Tax(Rate) dated : 28.06.20J7, Commission agent dealing with agricultural produce like tobacco attracts Nil rate of duty. The reverse charge provision has not been notified yet. The tobacco leaves received from trader in an auction is exempted from GST. Commission Agent receives tobacco from farmers and sell them within the state - Held that:- As the above service is exempt from tax by the entry No:24 of Notification No: 11/2017-Central Tax(Rate). hence. the commission agent is not liable to collect GST.
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