Gst on milk dairy

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I have a milk dairy, I will take milk from farmer and supply it to milk dairy company, i just take commission from milk dairy its bellow 100000/-, but total amount will credit to my account more than 40 lakh per annum, i will distribute entaire amount to farmer by keeping my part of commission. am i required to register GST.

Replies (4)
Yes , you as commission agent is compulsorily required to take Registration in term of Section 24 of CGST Act .

As per 12/2017-Ct (R) Sl. no. 52 the following service is exempted..

                 services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce

Milk is agricultural produce is no processing is done on it..

Appears that your service is exempted..

If 100% exempted TO - No registration required under GST.

Need to check the eligiblty of exemption in detail..

Agricultural Produce Market Committee (APMC) is a statutory market committee constituted by a State Government in respect of trade in certain notified agricultural or horticultural or livestock products, under the Agricultural Produce Market Committee Act issued by that state government. So i don't think milk is purchase in such type system from querist. & moreover milk is not sold therein .

Hence its taxable

 

The farmer, being cultivator, brings the goods in area notified, popularly known as Grain market and avail the services of Commission agent of his choice. The commission agents, having registrations under APMC Act, are pure agents who conduct the auction of agriculture produce on behalf of farmer. The auction of agriculture produce is held in presence of Market Committee officials and Traders intend to buy the produce. Once the auction is completed the agent gets the goods cleaned from dust and makes the weighment of the goods. Buyers then lift the s and the liability to pay for the goods arise immediately.

IN SHORT IF HE IS REGISTERED UNDER APMC ACT , & BUYING & SELLING GOODS UNDER APMC SHED , THEN HIS SERVICES ARE EXEMPTED


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