GST % ON BROKERAGE FROM MILLETS AND WHOLE PULSES & GST ON RICE & DALS SUCH AS TUVER DAL,MASUR DAL

Hi K P Bhanushali,

You're asking about GST applicability and rate on brokerage income related to:

1. Millets and Whole Pulses

2. 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.

• HSN Code: 9961 (for commission agent services)

• GST Rate: 18%

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:

✅ Conclusion:

🔹 Brokerage on Millets / Whole Pulses / Rice (Unprocessed & Unbranded):

• ✅ Exempt from GST under Entry 54.

• Reason: These are agricultural produce.

🔹 Brokerage on Dals (e.g. Tuver Dal, Masur Dal):

• ❌ Taxable at 18%

• Reason: Dals are processed goods (de-husked/split), not agricultural produce under GST definition.

📌 Summary Table: