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The Central Board of Indirect Taxes and Customs issues a corrigendum to modify paragraph 9 of Circular No. 57/31/2018-GST regarding the mandatory registration of commission agents. A commission agent requires compulsory registration under clause (vii) of section 24 of the CGST Act only when the principal is a taxable person and the supplies made by the agent are taxable. A commission agent who makes supplies on behalf of an agriculturist who is not a taxable person does not require compulsory registration under this clause. An agent who is liable to pay tax under reverse charge requires compulsory registration under section 24 (iii) of the CGST Act.
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Corrigendum to Circular No. 57/31/2018-GST
CBEC/20/16/04/2018-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing
New Delhi, Dated the $5^{\text{th}}$ November, 2018
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Corrigendum to Circular No. 57/31/2018-GST dated $4^{\text{th}}$ September, 2018 issued vide F. No. CBEC/20/16/4/2018-GST - Reg.
In para 9 of the Circular No. 57/31/2018-GST dated $4^{\text{th}}$ September, 2018,
for
"However, in cases where the supply of agricultural produce is not exempted and liable to tax, such commission agent shall be liable for compulsory registration under sub-section (vii) of section 24 of the CGST Act."
read,
"Further, according to clause (vii) of section 24 of the CGST Act, a person is liable for mandatory registration if he makes taxable supply of goods or services or both on behalf of other taxable persons. Accordingly, the requirement of compulsory registration for commission agent, under the said clause shall arise when both the following conditions are satisfied, namely: -
Generally, a commission agent under APMC Act makes supplies on behalf of an agriculturist. Further, as per provisions of clause (b) of sub-section (1) of section 23 of the CGST Act an agriculturist who supplies produce out of cultivation of land is not liable for registration and therefore does not fall within the ambit of the term 'taxable person'. Thus a commission agent who is making supplies on behalf of such an agriculturist, who is not a taxable person, is not liable for compulsory registration under clause (vii) of section 24 of the CGST Act. However, where a commission agent is liable to pay tax under reverse charge, such an agent will be required to get registered compulsorily under section 24 (iii) of the CGST Act."
It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
Difficulty, if any, in implementation of this Circular may please be brought to the notice of the Board. Hindi version would follow.
(Upender Gupta)
Commissioner (GST)
