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TMI Blog2024 (2) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... fore 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 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as 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. 3.2 For doing this, I charge a fixed price per bag of brokerage from the parties. Our name will not be mentioned anywhere in the sale or purchase invoice of the transactions. We raise invoice to the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (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 and Findings: We have examined the issues raised in the application in light of the facts and arguments submitted by the applicant. We have considered the sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices 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 drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se 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 notification No. 11/2017-CT (Rate) and 12/2017-CT(Rate) and corresponding notifications is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 auct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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