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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
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
th
September, 2018 issued
vide F. No. CBEC/20/16/4/2018-GST - Reg.

Page 1 of 2


In para 9 of the Circular No. 57/31/2018-GST dated 4
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: -
(a) the principal should be a taxable person; and

Corrigendum to Circular No. 57/31/2018-GST

Page 2 of 2

(b) the supplies made by the commission agent should be taxable.
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.”

2. It is requested that suitable trade notices may be issued to publicize the contents of this
Circular.
3. 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)
circulars no corrigendum | iKargos