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.
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23 August 2025
Thanks a lot Sir For Reply
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23 August 2025
You are welcome...
22 September 2025
Good luck..
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