2025-VIL-100-AAR
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SGST Advance Ruling Authority

GST – Kerala AAR - Cardamom Auction, Commission Agent, Agricultural Produce - Whether the commission earned by the applicant as a cardamom auctioneer is exempt from GST under Entry 54(g) of Notification No. 12/2017-CT(Rate) which exempts "services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce" – HELD - While both auctioneers and commission agents are types of agents under Section 2(5) of the CGST Act, 2017 they perform distinctly different functions. The applicant is specifically licensed as an auctioneer under the Cardamom (Licensing and Marketing) Rules, 1987, holding e-auction License. The Entry 5 of Notification No. 11/2017-CT(Rate) explicitly includes "services of auctioneers" as taxable services - The exemption notifications must be strictly interpreted, and the exemption under Entry 54(g) of Notification No. 12/2017-CT(Rate) applies only to commission agents, not auctioneers - Commission agent in a primary agricultural market typically helps farmers sell produce in "as-is where-is" condition, whereas an auction house provides a wider range of services including pooling, grading, sampling, and maintaining accounts as mandated by the Spices Board. Additionally, according to the Explanatory Notes to the Scheme of Classification of Services, sales commission and auction commission properly fall under SAC codes 996111 or 996211 (relating to Entry 5 of Notification No. 11/2017), not under SAC 9986 (relating to Entry 54 of Notification No. 12/2017). Therefore, the specific entry under Notification No. 11/2017-CT(Rate) supersedes the general entry in Notification No. 12/2017-CT(Rate) - The commission earned by the cardamom auction company for facilitating the sale of cardamom is subject to 18% GST, with no specific exemptions applicable to their situation as an intermediary in the sale of agricultural produce
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