Commission Agent Services for Chicks Not Exempt Under GST | AAR

Case Details: Venkateshwara Hatcheries (P.) Ltd., In re - [2025] 175 taxmann.com 662 (AAR-MAHARASHTRA)

Judiciary and Counsel Details

• D.P. Gojamgunde & Ms Priya Jadhav, Member

Facts of the Case

The applicant was engaged in promoting, marketing, and selling birds, specifically chicks, on behalf of its clients and functioned as a commission agent for such sales. The applicant submitted that the services rendered were in relation to the rearing of life forms of animals for agricultural purposes and therefore classifiable under Heading No. 9986. It was contended that such services qualified for exemption under Sl. No. 54 of Notification No. 12/2017-Central Tax (Rate), dated 28-06-2017. The core issue was whether the applicant’s services qualified as support services to agriculture including rearing of all life forms of animals or whether they constituted taxable intermediary services in general wholesale trade. The matter was accordingly placed before the Authority for Advance Ruling (AAR), Maharashtra.

AAR Held

The AAR Maharashtra held that the services provided by the applicant were not for the sale of any agricultural produce but were for the sale of livestock, specifically chicks, for the purpose of breeding. It was observed that such services did not amount to support services for any agricultural produce. The authority determined that the applicant’s services were classifiable under Heading No. 996111 and not under Heading No. 9986. Consequently, the exemption under Sl. No. 54 of Notification No. 12/2017-Central Tax (Rate), dated 28-06-2017 was held to be inapplicable.

List of Cases Referred to

• CIT v. K.E. Sundara Mudaliar [1950] 18 ITR 259 (Madras) (para 2.4.9)
• Erode Manjal Vanigarkal Matrum Kidangu Urimaiyalargal Sangam, In re [2018] 97 taxmann.com 450/69 GST 910/17 GSTL 151 (AAR – TAMILNADU) (para 2.4.9)
• Lean & Dickson v. Ball [1925] 10 TC 341 (para 2.4.9)
• Shubhlaxmi Cold Storage & Ice Factory (P.) Ltd., In re [2019] 103 taxmann.com 237/[2018] 18 GSTL 634 (AAR – RAJASTHAN) (para 2.6.6).