Home Case Index All Cases GST GST + AAR GST - 2018 (9) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 1258 - AAR - GSTLevy of GST - service by the commission agents to the agriculturists for their sale or purchase of their produce not involving the agents - Whether service by the commission agents to the agriculturists for their sale or purchase of their produce not involving the agents as either a recipient of goods or as a supplier of goods are liable to tax or not? Held that:- It is clear that the agent, who is a member of the applicant stores the turmeric in their godown, the sales of which is as per the guidelines of EMC. Also from the invoices furnished, it is seen that the invoice is raised by the agent on the buyer wherein the agriculturist is mentioned as the seller and is signed by the Farmer, agent and the buyer. Further, it is seen that the buyer pays the agent who after deducting his commission for the services rendered passes on the sale proceeds to the farmer. It is evident that these activities of the applicant are those covered by the definition of 'Commission agent' under 'The Tamil Nadu Agricultural Produce Marketing (Regulation) Act, 1987'. From the supporting documents and materials filed by the applicant and the various statutory provisions, it is clear that the activities of the applicant are those services provided by an agent to the farmer, generally provided in relation to agricultural produce in the primary market regulated by a marketing committee. The applicant is only a Commission Agent providing support services for Agricultural produce and the services extended are rightly classifiable as 'Support service to agriculture..' under the Heading 9986 and the activity of the applicant attract 'NIL' rate as per Sl. No. 24 (i) (i) (g) of the Notification No. 11/2017-CT (Rate) dated 28.06.2017 as amended and 'NIL' rate of SGST as per Sl.N0. 24 (i) (i) (g) of G.O.(Ms) No 72 dated 29.06.2017 No. II(2)/CTR/532(d-14)/2017 as amended. Ruling:- The service by the Commission Agents as per the submissions of the applicant to the agriculturists of turmeric is service under the Heading 9986 and is taxed to 'NIL' rate of CGST as per Sl.No. 24 (i) (i) (g) of the Notification No. 11/2017-CT (Rate) dated 28.06.2017 as amended and 'NIL' rate of SGST as per Sl.No. 24 (i) (i) (g) of G.O.(Ms) No 72 dated 29.06.2017 No. II(2)/CTR/532(d-14)/2017 as amended.
|