Home Case Index All Cases GST GST + AAR GST - 2024 (2) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (2) TMI 1055 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESHRequirement of GST registration - dealing in brokerage of agricultural produce which is exempt - requirement to discharge GST - Rate of GST - HELD THAT:- In the instant case the applicant is involved in processing of the agricultural produce such as de-husking or splitting of the pulses to make the product marketable. Pulses commonly known as dal are obtained after dehusking or splitting or both. The process of de-husking or splitting is usually not carried out by farmers or at farm level but by the pulse millers. Therefore pulses (dehusked or split) are also not agricultural produce. However whole pulse grains such as whole gram, rajma etc. are covered in the definition of agricultural produce - It is clarified that processed pulses fall outside the definition of agricultural produce given in notification No. 11/2017-CT (Rate) and 12/2017-CT(Rate) and corresponding notifications issued under IGST and SGST Acts and therefore the exemption from GST is not available to them. Commission and brokerage - HELD THAT:- “Commission typically refers to income earned by a person for arranging a transaction between two parties and earning a percentage of the sales proceeds. The commission earned in such a scenario is taxable under GST as a service at 18%,” GST registration applies to all commission and brokerage income irrespective of the turnover limits of the taxpayer “Persons who make taxable supplies of goods or services or both on behalf of other taxable persons whether as an agent or not are required to take registration regardless of turnover - In the instant case the applicant is involved in the processing of the products and also facilitates the transactions between buyer and seller and collects brokerage charges. Therefore the applicant is required to obtain registration as well has to pay CGST @ 9% and SGST @ 9% as per notification 11/2017-central Tax (Rate) dated 28.06.2017 given below, irrespective of whether the goods involved in the transaction are exempted or taxable under GST.
|