9911796707
TMI Blog2024 (2) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... ess a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the APGST Act. 2. The present application has been filed u/s 97 of the Central Goods & Services Tax Act, 2017 and AP Goods & Services Tax Act, 2017 (hereinafter referred to CGST Act and APGST Act respectively) by M/s. Gayatri Enterprises (hereinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief Facts of the case: 3.1 M/s Gayatri Enterprises (Hereinafter referred to as "applicant") is doing a Commissioning Agent/Broker dealing in brokerage of Agricultural Produce. I facilitate transactions between wholesalers and millers/farmers. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to note that, most of these products require processing/milling/dehusking to bring them into a marketable form. 5.2 As we are dealing with brokerage of agricultural produce (which require processing), we have obtained GST Registration and we are charging GST at the rate of 18%. Please let us know, is our interpretation correct? We are getting a lot of resistance from the parties all over India, that GST is not applicable for us. In this regard, We thought of seeking the help of Advance Ruling Authority to clarify. 6. Personal Hearing: The proceedings of Personal Hearing were conducted on 01.12.2023, for which the authorized representative, K.M.V.L. Pavan Kumar, Manager, attended and reiterated the submissions already made. 7. Discussion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing services only have NIL GST: (I) Support services to agriculture, forestry, fishing, animal husbandry. Explanation. - "Support services to agriculture, forestry, fishing, animal husbandry" mean - (i) Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of- (a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing; (b) supply of farm labour; (c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun dr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er its essential characteristics but makes it marketable for primary market" 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. In view of the above it is clarified that processed pulses fall outside the definition of agricultural produce given in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. As per Notification No. 11/2017-Central Tax (Rate) 28/06/2017 SI.No Chapter, Section, or heading Description of service Rate (percentage) condition 5 Heading 9961 Services in wholesale trade. Explanation -This service does not include sale or purchase of goods but includes: - Services of commission agents, commodity brokers, and auctioneers and all other traders who negotiate wholesale commercial transactions between bu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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