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Question ID : 40474


My client is a kacha artiya he sells raw cotton , mustard oil seed on behalf of agricultueist and sells it to factories and takes his commission he issues his own bill collects payment and pay to agriculturiat after deducting his commission. Is he liable to pay gst under. Reverse charge on raw cotton and oil seeds. he is however charging gst on his sale bill.

Posted by VIPIN GUPTA on Nov 19, 2019

Filed Under GST

Answer ID : 80254

RCM liability exists on supply of raw cotton. However since the commission agent does not purchase and sell the raw cotton but only provides the agency services, no liability in the hands of the agent but the purchaser would be liable. Further there is an exemption vide entry No,57 of the notification 9/2017-IGST R for the service provided by a commission agent for sale or purchase of agricultural produce. This could be seen to identify if the commission agent would be liable for GST on the commission income received.

Posted by CA. SHILPI KATARIYA on Nov 21, 2019
Answer ID : 80259

He is not liable to pay GST. Refer circular no. 57/31/2018-GST dated 4th September, 2018 for more clarity.

Posted by CA. chunauti dholakia on Nov 21, 2019