Registration under GST— Section 22 of CGST Act— In the instant case, the appellant is engaged in the business of commission agent i.e. supplying the services for selling the agricultural produce of farmers to various buyers being traders, manufacturers etc. Such goods brought by farmers for sale are also purchased by the Government through its various agencies.

The appellant had sought a ruling on whether commission agent, providing services in relation to sale or purchase of agriculture produce, is liable to obtain registration and whether the commission agent is liable for tax under reverse charge mechanism on services provided in sale of raw cotton vide notification No. 121/ST-2, dated 14.11.2017 issued under Haryana Goods and Services Tax Act, 2017.

The advance ruling authority in its order has held that a commission agent who is making supplies on behalf of such agriculturist, who is not a taxable person, is not liable for compulsory registration under clause (vii) of Section 24 of the CGST/HGST Act.

The Advance Ruling Authority has further held in its ruling that in case the aggregate turnover of supply of exempted as well as taxable turnover by a commission agent (Kachha Arhtiya) exceeds the threshold limit as provided under Section 22(1) of the CGST/HGST Act, such commission agent shall be liable for registration.

Held that— The advance ruling authority has therefore rightly held that such commission agents are liable for registration since they qualify as agents under schedule I subject to the provisions of Section 22(1) of the Act where the aggregate turnover of supply of exempted as well as taxable goods or services exceeds the threshold limit and that such commission agents shall also be liable for compulsory registration as per provisions of Section 24 (vii) of the Act. 

This authority has no hesitation in dismissing the appeal and the Advance Ruling does not suffer from any infirmity or illegality and the same is upheld.