The Andhra Pradesh Authority for Advance Ruling ( AAR ) has ruled that the brokerage of agricultural produce is liable for the Goods and Service registration , therefore it would attract 18% Goods and Service Tax.
The applicant Gayathri Enterprises is commissioning Agent/broker dealing in brokerage of agricultural produce and facilitating transactions between wholesalers and millers. They charged a fixed price per bag. The applicant has sought an advance ruling in respect of GST registration of brokerage of agriculture produce and its rate of GST .
KMVL Pavan Kumar authorized representative appeared on behalf of the applicant who submitted that the applicant was dealing in the brokerage of agricultural produce .They have obtained GST registration and are charging GST at the rate of 18%.
It was observed by the authority that applicant is involved in the processing of the products and also facilitate the transactions between buyers and sellers and collect brokerage charges. Therefore the applicant is required to obtain registration
The two member bench of Authority of Advance Ruling comprising K Ravi Shankar Commissioner of State Tax ( Member ) and B Lakshmi Narayana IRS, Joint Commissioner of Central Tax ( Member ) held that the brokerage of agricultural produce is liable for the Goods and Service registration and attracts 18% Goods and Service Tax.
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