GST Applicability on Fair Price Shop Commission Income
This query is : Resolved
21 August 2025
Respected Sir,
a peson has Fair Price Shop and Received Commission Income For F.Y. 1,20,000 and TDS Deducted is Rs. 2400
he has taken GST Number on April 2024 For selling product on online Platform but For F.Y. 2024-25 there is nil Turnover and Commission Income is 1,20,000 From fair Price Shop (The Gujarat State Civil Supplies Corporation Limited)
now My question is What is GST Appliacability on commission income from Fair Price Shop (The Gujarat State Civil Supplies Corporation Limited )
a peson has Fair Price Shop and Received Commission Income For F.Y. 1,20,000 and TDS Deducted is Rs. 2400
he has taken GST Number on April 2024 For selling product on online Platform but For F.Y. 2024-25 there is nil Turnover and Commission Income is 1,20,000 From fair Price Shop (The Gujarat State Civil Supplies Corporation Limited)
now My question is What is GST Appliacability on commission income from Fair Price Shop (The Gujarat State Civil Supplies Corporation Limited )
21 August 2025
As per Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017:
Services by Fair Price Shops to the Central Government, State Governments, Union territories or local authorities by way of sale of food grains, kerosene, sugar, etc. under the Public Distribution System (PDS) against commission or margin are exempt from GST.
The person is receiving Rs. 1,20,000 commission from GSCSCL, which is:
A government entity.
Related to PDS operations.
Therefore, if this commission is exclusively for PDS-related work, then:
GST is not applicable on this income as it is exempt under Notification 12/2017.
Since income is exempt, there’s no need to charge GST on it.
However, since the person is registered, they will still need to file NIL GSTR-1 and GSTR-3B (monthly/quarterly as applicable) unless registration is surrendered.
Services by Fair Price Shops to the Central Government, State Governments, Union territories or local authorities by way of sale of food grains, kerosene, sugar, etc. under the Public Distribution System (PDS) against commission or margin are exempt from GST.
The person is receiving Rs. 1,20,000 commission from GSCSCL, which is:
A government entity.
Related to PDS operations.
Therefore, if this commission is exclusively for PDS-related work, then:
GST is not applicable on this income as it is exempt under Notification 12/2017.
Since income is exempt, there’s no need to charge GST on it.
However, since the person is registered, they will still need to file NIL GSTR-1 and GSTR-3B (monthly/quarterly as applicable) unless registration is surrendered.
Message likes :
1 times
23 August 2025
Thanks a lot Sir For Reply
Message likes :
1 times
23 August 2025
You are welcome...
22 September 2025
Good luck..
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Eway bill for machinery reparing
- Under construction property in ITR
- Gift of mutual fund units to daughter
- Not able to file ITR
- Upload Level ValidationITR3Category of Defect B/D
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
