Services of Commission agent dealing with tobacco attracts Nil rate of GST : AAR

Services of Commission agent dealing with tobacco attracts Nil rate of GST : AAR | Ruling by Authority of Advance RulingAndhra Pradesh in ma

CA Deepak Gupta

Nov 9, 2018

Last update on Nov 9, 2018

Services of Commission agent dealing with tobacco attracts Nil rate of GST : AAR | Ruling by Authority of Advance RulingAndhra Pradesh in matter ofJayalakshmi Tobacco Company

Services of Commission agent dealing with tobacco attracts Nil rate of GST : AAR

Below is the extract of the ruling : In view of above discussion and findings, I answer the questions of the applicant as under: Issue No. 1 Will GST be applicable on sale of tobacco leaves received from farmers made by Commission Agent in an auction and his turnover is less than Rs.20 Lakh As per entry No: 24 Notification No: 11 /2017 Central Tax(Rate) dated : 28.06.2017, Commission agent dealing with agricultural produce like tobacco attracts Nil rate of duty. lssue No. 2 In case , there is GST in the above situation, who has to pay me tax Not Applicable lssue No. 3 Will reverse charge provisions applicable for tobacco leaves or not The reverse charge provision has not been notified yet. Issue No. 4 Who has to pay GST when commission agent sell the tobacco leaves received from trader in an auction Can commissioner agent collect GST from buyers and pay or not Please refer to Issue No.1. The activity is exempted from GST lssue No. 5 The Commission Agent receives tobacco from farmers and sell them within the state. He takes commission from farmers for his services and it is less than Rs. 20 Lakh in a year. Will the commission Agent is liable to collect GST in this situation. As the above service is exempt from tax, by the entry No: 24 of Notification No: 11 / 2017- Central Tax(Rate), hence the commission agent is not liable to collect GST.

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CA Deepak Gupta

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