No GST Exemption on Supply of Brokerage Services for Processed Agricultural Produce | AAR
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 15 March, 2024
Latest from Taxmann
Case Details: Authority for Advance Rulings, Andhra Pradesh Gayatri Enterprises, In re - [2024] 160 taxmann.com 335 (AAR-ANDHRA PRADESH)
Judiciary and Counsel Details
-
- K. Ravi Sankar & B. Lakshmi Narayana, Member
-
K.M.V.L. Pavan Kumar for the Appellant.
Facts of the Case
The applicant was operating as Commissioning Agent/Broker, facilitating transactions between wholesalers and millers/farmers in brokerage of Agricultural Produce. It charged fixed brokerage fee per bag of produce without their name mentioned on invoices. It filed an application for advance ruling to determine whether GST would be levied on brokerage of agricultural produce which is exempt from GST.
AAR Held
The Authority for Advance Ruling (AAR) noted that Notification No. 11/2017-Central Tax (Rate) and Notification No. 12/2017-Central Tax (Rate) define “agricultural produce” as unprocessed or minimally processed produce for primary markets. In the instant case, the de-husking or splitting of pulses would alter the essential characteristics of agricultural produce.
The process involved in making pulses marketable, typically undertaken by pulse millers rather than farmers, would render pulses (de-husked or split) ineligible as agricultural produce. Thus, the AAR held that brokerage services for processed agricultural produce would fall under “Services in relation to wholesale trade” attracting 18% GST as per Notification No. 11/2017-Central Tax (Rate).
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
