Manager - Finance & Accounts
58384 Points
Joined June 2010
Hi K P Bhanushali,
You're asking about GST applicability and rate on brokerage income related to:
-
Millets and Whole Pulses
-
Rice and Dals (like Tuver Dal, Masur Dal)
Let’s break it down clearly:
✅ 1. GST on Brokerage (Commission) – General Rule:
🧾 Brokerage or commission services are considered supply of services under GST.
This rate is applicable irrespective of the underlying goods (e.g., millets, rice, pulses), unless exempted specifically.
✅ 2. Is Brokerage on Agricultural Produce Exempt?
Yes — BUT only under specific conditions.
👉 As per Notification No. 12/2017 – Central Tax (Rate), dated 28.06.2017:
Exemptions are available for services by way of:
"...commission or brokerage services relating to sale or purchase of agricultural produce" (Entry 54 of the notification).
📌 Now, What Is “Agricultural Produce”?
Defined under the same notification as:
"Products out of cultivation of plants and rearing of animals for food, fibre, fuel, raw material, which do not undergo processing (or only minimal processing) that does not alter its essential characteristics."
📦 Product-wise Clarification:
Product |
GST on Sale |
Brokerage Exempt? |
Remarks |
Millets (e.g. Jowar, Bajra) |
0% (if unbranded & unprocessed) |
✅ Yes |
Considered agri produce |
Whole Pulses (e.g. Chana, Masoor, Tuver) |
0% or 5% |
✅ Yes |
Whole pulses are agri produce |
Rice (unbranded, non-packed) |
0% |
✅ Yes |
Agri produce |
Dal (e.g., Tuver Dal, Masur Dal) |
5% (processed product) |
❌ No |
Not agri produce after milling/splitting |
Branded / Packed Pulses or Rice |
5% |
❌ No |
Treated as packaged commodity |
✅ Conclusion:
🔹 Brokerage on Millets / Whole Pulses / Rice (Unprocessed & Unbranded):
🔹 Brokerage on Dals (e.g. Tuver Dal, Masur Dal):
📌 Summary Table:
Nature of Brokerage |
GST Rate |
Millets (Unprocessed) |
Exempt |
Whole Pulses (Unprocessed) |
Exempt |
Rice (Unbranded, Unpacked) |
Exempt |
Branded or Packed Rice / Pulses |
18% on brokerage |
Dal (Tuver, Masur, etc.) |
18% on brokerage |