Important Keyword: Circular No. 57/31/2018-GST, Section 24(vii) CGST Act, Section 23(1)(b) CGST Act, Section 24 (iii) CGST Act.
CBEC/20/16/04/2018-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Goods and Services Tax Policy Wing
New Delhi, Dated the 5th November, 2018
Corrigendum to Circular No. 57/31/2018-GST
Table of Contents
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Corrigendum to Circular No. 57/31/2018-GST dated 4th September 2018 issued vide F. No. CBEC/20/16/4/2018-GST – Reg.
In para 9 of the Circular No. 57/31/2018-Goods and Services Tax dated 4th September, 2018,
for
“However, in cases where the supply of agricultural produce is not exempted and liable to tax, such commission agent shall be liable for compulsory registration under sub-section (vii) of section 24 of the Central Goods and Services Tax Act.”
read,
“Further, according to clause (vii) of section 24 of the Central Goods and Services Tax Act, a person is liable for mandatory registration if he makes taxable supply of goods or services or both on behalf of other taxable persons. Accordingly, the requirement of compulsory registration for commission agent, under the said clause shall arise when both the following conditions are satisfied, namely: –
- the principal should be a taxable person; and
- the supplies made by the commission agent should be taxable.
Generally, a commission agent under APMC Act makes supplies on behalf of an agriculturist. Further, as per provisions of clause (b) of sub-section (1) of section 23 of the Central Goods and Services Tax Act an agriculturist who supplies produce out of cultivation of land is not liable for registration and therefore does not fall within the ambit of the term „taxable person‟.
Thus a commission agent who is making supplies on behalf of such an agriculturist, who is not a taxable person, is not liable for compulsory registration under clause (vii) of section 24 of the Central Goods and Services Tax Act. However, where a commission agent is liable to pay tax under reverse charge, such an agent will be required to get registered compulsorily under section 24 (iii) of the Central Goods and Services Tax Act.”
2. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
3. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the Board. Hindi version would follow.
(Upender Gupta)
Commissioner (Goods and Services Tax)
Download Pdf: https://taxinformation.cbic.gov.in/
