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2018 (8) TMI 1859 - AAR - GSTLevy of GST = reverse charge mechanism (RCM) - supply of raw cotton - services by commission agent in relation to sale or purchase of Agricultural produce - requirement of registration - Whether commission agent, providing services in relation to sale or purchase of Agricultural produce, is liable to obtain registration and is liable for tax under reverse charge mechanism on services provided in sale of Raw Cotton vide N/N. 121 /ST-2, dated 14-11-2017 issued under Haryana Goods & Services Tax Act, 2017 (hereinafter referred as HGST) read with corresponding N/N. 43/2017, dated 14-11-2017 issued under Central Goods & Services Tax Act, 2017? HELD THAT:- A commission agent who is making supplies on behalf of such agriculturist, who is not a taxable person, is not liable for compulsory registration under clause (vii) of Section 24 of the CGST/HGST Act, 2017. However, if the aggregate turnover of supply of exempted as well as taxable goods by commission agents (Kachha Arhatia) exceeds the threshold limit, such commission agents shall be liable for registration as per Section 22(1) of CGST/ HGST Act, 2017. As per Notification No. 121/ST-2, dated 14-11-2017 issued under Haryana Goods & Services Tax Act, 2017 read with corresponding Notification No. 43/2017, dated 14-11-2017 issued under Central Goods & Services Tax Act, 2017, raw cotton has been inserted at Sr. No. 4A in the table notified vide Notification No. 381ST -2, dated 30-6-2017 under the HGST Act, 2017 and corresponding Notification No. 4/2017-Central Tax (Rate), dated 28-6-2017 under the CGST Act, 2017, The notification specifies that the tax on the supply of goods (raw cotton) by an agriculturist shall be payable on reverse charge basis by any registered person as the recipient of such supply. Thus, a commission agent who becomes liable for registration under Section 22(1) of the Acts ibid, shall also become liable to pay tax on supply of raw cotton by an agriculturist on reverse charge basis being a registered person.
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