Processed pulses to attract GST, says AAR in case involving agri broker
Processed pulses obtained after dehusking and splitting the grains are unlike whole pulse grains and not agricultural produce, making them liable to goods and services tax (GST), ordered the Andhra Pradesh authority for advance rulings (AAR).
Besides, brokerage of agricultural produce charged to facilitate transactions between wholesalers and millers or farmers will draw 18 per cent GST, ruled the AAR.
Sandeep Sehgal, tax partner at AKM Global, said the case relates to Andhra Pradesh-based Gayatri Enterprises, a broker in agricultural produce such as urad dal and its varieties, moong dal and variants, toor, jowar and karamani. The company charges a fixed price per bag from the parties.
Its name is not mentioned anywhere in sale or purchase invoices of transactions. It raises invoices to the parties only for the brokerage amount.
The company obtained GST registration and charges 18 per cent tax, but was resisted by parties all over the country who said that GST is not applicable to agricultural produce and brokerage.
