This circular provides a corrigendum to Circular No. 57/31/2018-GST dated 4 September 2018 by revising the clarification given in paragraph 9 regarding compulsory GST registration of commission agents.

The corrigendum explains that compulsory registration under section 24(vii) of the CGST Act applies to a commission agent only when both of the following conditions are satisfied:
(i) the principal on whose behalf the agent makes supplies is a taxable person, and
(ii) the supplies made by the commission agent are taxable.

It further clarifies that commission agents operating under the APMC Act generally make supplies on behalf of agriculturists. Since an agriculturist supplying produce out of cultivation of land is not liable for GST registration under section 23(1)(b) of the CGST Act and is therefore not a “taxable person”, a commission agent making supplies on behalf of such an agriculturist is not liable for compulsory registration under section 24(vii).

However, the circular clearly states that where a commission agent is liable to pay GST under the reverse charge mechanism, such agent will be required to obtain compulsory registration under section 24(iii) of the CGST Act.

Field formations have been requested to issue suitable trade notices to publicize this clarification and to report any implementation difficulties to the Board.

give summary of attached circular in maximum half page. Give circular no and date on the top. Give one subject line in bold reflecting the purpose of circular. In start don’t write Circular issued by CBIC instead write this circular provides and then summary.