GST Applicability on Fair Price Shop Commission Income

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This discussion clarifies the Goods and Services Tax (GST) applicability on commission income earned by a Fair Price Shop owner from the Gujarat State Civil Supplies Corporation Limited. Based on Notification No. 12/2017, services provided by Fair Price Shops under the Public Distribution System (PDS) against commission are exempt from GST. Therefore, the commission income of £1,20,000 is not subject to GST. However, if GST registration has been obtained, nil GSTR-1 and GSTR-3B returns must still be filed monthly or quarterly.

Javed Memon

Javed Memon (Querist)

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 )

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

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.

Message likes : 1 times

Javed Memon

Javed Memon (Querist)

23 August 2025 Thanks a lot Sir For Reply

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

23 August 2025 You are welcome...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 September 2025 Good luck..

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