GST on Services of commission agent

Analysis of GST on Services of commission agent In India

Is there any GST on Services of commission agent ?

Yes,

Services of commission agent in wholesale trade fall under 99611. “Services provided for a fee or commission or on contract basis on wholesale trade”

Services of commission agent in retail trade fall under 99621. “Services provided for a fee or commission or on contract basis on retail trade”

Note that services of Clearing and Forwarding Agent (C&F) do not fall under this head.

[ As per Annexure to Notification No 11/2017 Central Tax (Rate) Dated 28th June 2017  and Notification No 8/2017 Integrated Tax (Rate) Dated 28th June, 2017 ]

What is the GST rate on Services of commission agent ?

CGST Rates are 9% and SGST rate 9% / IGST Rate is 18% for following services

i) Services in wholesale trade.

Explanation-This service does not include sale or purchase of goods but includes:

– Services of commission agents, commodity brokers, and auctioneers and all other traders who negotiate whole sale commercial transactions between buyers and sellers, for a fee or commission

– Services of electronic whole sale agents and brokers,

– Services of whole sale auctioning houses.

ii) Services in retail trade.

Explanation.—This service does not include sale or purchase of goods

[ As per Entry No 5 and 6 of Notification No 11/2017 Central Tax (Rate) Dated 28th June 2017  and Notification No 8/2017 Integrated Tax (Rate) Dated 28th June, 2017  ]

Is there any Exemption on  Services of commission agent ?

For period 22-8-2017 to 15-11-2017, the exemption from GST was as follows –

Entry 11A [12A in Integrated Tax (rate) ] :-

 Service provided by Fair Price Shops to Central Government by way of sale of wheat, rice and coarse grains under Public Distribution System(PDS) against consideration in the form of commission or margin.

Entry 11B [12B in Integrated Tax (rate)] :-

Service provided by Fair Price Shops to State Governments or Union territories by way of sale of kerosene, sugar, edible oil, etc. under Public Distribution System (PDS) against consideration in the form of commission or margin

[ Notification No 12/2017 Central Tax (Rate) Dated 28th June 2017  and Notification No 9/2017 Integrated Tax (Rate) Dated 28th June, 2017 amended w.e.f. 22-8-2017 by Notification No. 21/2017-Central Tax (Rate)/ Notification no 21/2017 Integrated Tax (Rate), and existing upto 15-11-2017.  ]

For period from 15-11-2017, the exemption from GST is as follows –

Entry 11 A  [12A in Integrated Tax (rate) ]

Service provided by Fair Price Shops to Central Government, State Government or Union territory by way of sale of food grains, kerosene, sugar, edible oil, etc. under Public Distribution System against consideration in the form of commission or margin.

[ Note Entry 11B [12B in Integrated Tax (rate)] omitted/deleted w.e.f 15.11.2017

Entry 11B :-

Service provided by Fair Price Shops to State Governments or Union territories by way of sale of kerosene, sugar, edible oil, etc. under Public Distribution System (PDS) against consideration in the form of commission or margin ]

[ Notification No 12/2017 Central Tax (Rate) Dated 28th June 2017  and Notification No 9/2017 Integrated Tax (Rate) Dated 28th June, 2017 amended w.e.f. 15.11.2017  by Notification No. 47/2017-Central Tax (Rate ) and Notification No 49/2017 Integrated Tax (Rate): ]

 

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