Case Law Details
In re M/s Bhaktawar Mal Kamra & Sons (GST AAR Haryana)
Whether Commission agent, providing services in relation to sale or purchase of Agriculture produce, is liable to obtain registration and is liable for tax under reverse charge mechanism on services provided in sale of Raw Cotton vide notification no. 121/ST-2, dated 14-11-2017 issued under Haryana Goods & Service Tax Act-2017 read with corresponding notification no. 43/2017 dated 14-11-2017 issued under Central Goods & Service Tax Act-2017.
Ruling
No GST registration required for commission agent supplying exempted agricultural produce at a commission
As per the above discussions, a commission agent who is making supplies on behalf of such agriculturist, who is not a taxable person, is not liable for compulsory registration under clause (vii) of section 24 of the CGST/HGST Act, 2017. However, if the aggregate turnover of supply of exempted as well as taxable goods by commission agents (Kachha Arhatia) exceeds the threshold limit, such commission agents shall be liable for registration as per section 22 (1) of CGST/HGST Act, 2017.
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