In re Jayalakshmi Tobacco Company (GST AAR Andhra Pradesh)
Q1. 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
Q2. n case, there is GST in the above situation, who has to pay the tax?
Not Applicable
Q3. Will reverse charge provisions applicable for tobacco leaves or not?
The reverse charge provision has not been notified yet.
Q4. Who has to pay GST when commission agent sell the tobacco leaves received from trader in an auction? Can commission agent collect GST from buyers and pay or not?
Please refer to Issue No.1. The activity is exempted from GST
Q5. The Commission Agent receives tobacco from farmers and sei them within the state. He takes commission: from farmers for hi5 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.
