Agri, textiles and crafts

GST invoice format for an agricultural commission agent (arhtiya / adatya)

A mandi commission agent earns commission, not the price of the produce. Services provided by a commission agent for sale or purchase of agricultural produce are a nil-rated support service to agriculture, and loading, unloading, packing and storage of agricultural produce are also nil. The agent's bill (often called a patti or sale bill) should separate the produce value paid to the farmer, the agent's commission, hamali, weighing and market fee, and say whether the produce is unprocessed agricultural produce or a processed item.

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Sample agricultural commission agent (arhtiya) invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Commission on sale of wheat (agricultural produce), 2% of Rs 5,00,000	996111	1 NOS	10,000.00	10,000.00	0%
Hamali (loading and unloading of agricultural produce), per bag	996719	200 BAG	8.00	1,600.00	0%
Storage of agricultural produce in agent's godown, per bag per month	996721	200 BAG	5.00	1,000.00	0%
Commission on sale of jaggery (processed, not agricultural produce), 2%	996111	1 NOS	1,600.00	1,600.00	18%
Taxable value				₹14,200.00
GST (CGST + SGST, or IGST if inter-state)				₹288.00
Invoice total				₹14,488.00

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a agricultural commission agent (arhtiya) invoice needs

Farmer (consignor) and buyer (purchaser) names: An arhtiya acts between farmer and trader. The patti issued to the farmer and the sale bill issued to the buyer should both name the other party, the lot and the auction date so the deal can be traced through the mandi records.
Lot, commodity and auction rate: Each lot is auctioned separately. Commodity, variety, number of bags, net weight and the auction rate per quintal must be shown so the farmer can verify his payment against the mandi's auction register.
Commission percentage and amount: Commission rates are usually fixed by the state's market committee rules. Printing the percentage and the rupee amount separately keeps commission visible as the agent's own income, distinct from the produce value.
Hamali, weighing and other charges: Loading, unloading and weighing charges are collected on behalf of labourers or the market. Listing them separately prevents them being treated as part of the agent's commission or the farmer's price.
Market fee and APMC licence number: Market fee or cess is a state levy, not GST. The agent's licence number under the state APMC Act identifies the shop in the mandi records and should appear on every patti.
Whether the produce is agricultural produce: Whole grains, fresh vegetables and raw cotton are agricultural produce; dal, gur and processed spices are not. A one-word note per lot supports the nil rate on commission.

Standard GST invoice fields

Rule 46 of the CGST Rules applies to every tax invoice, including this one:

Supplier name, address and GSTIN
Consecutive invoice number (max 16 characters, unique for the year)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a agricultural commission agent (arhtiya)

Commission on agricultural produce is nil

Entry 24 of Notification 11/2017-Central Tax (Rate) under heading 9986 treats services by any Agricultural Produce Marketing Committee or Board and services provided by a commission agent for sale or purchase of agricultural produce as support services to agriculture, taxed at nil. The same entry covers loading, unloading, packing, storage and warehousing of agricultural produce. An arhtiya handling only grains, oilseeds, fresh vegetables, fruit and raw cotton therefore earns nil-rated income and, if registered, issues a bill of supply for his commission.

Processed goods take commission out of the exemption

The definition of agricultural produce covers produce on which no further processing is done, or only processing usually done by a cultivator that keeps it marketable for the primary market. Split pulses, jaggery, processed spices, tea and processed dry fruits are generally outside it. Commission earned on selling such goods is a taxable intermediary service. The agent's billing must classify each lot, because commission on wheat and commission on gur in the same week carry different tax.

Produce value is not the agent's turnover

Where the agent sells in the farmer's name as a pure agent and the buyer pays the price through him, the produce value is the farmer's sale, not the agent's supply. Only commission and service charges are the agent's turnover for GST. Where an agent buys and resells on his own account, he is a trader, and his sales are taxed as goods, at nil for exempt produce or at the goods rate for taxable items. Agents who do both must keep separate books.

Registration often not needed

An arhtiya with only nil-rated commission on agricultural produce makes only exempt supplies and need not register. If he also earns taxable commission on processed goods, or trades on his own account in taxable goods, and his aggregate turnover crosses the threshold, he must register and charge tax on the taxable portion only.

Common billing mistakes

Charging GST on commission for selling wheat, paddy or fresh vegetables, which is a nil-rated support service.
Treating commission on dal, jaggery or processed spices as exempt, when those goods are not agricultural produce.
Showing the full produce value as the agent's own turnover in returns.
Mixing market fee, hamali and commission into one figure, so the farmer cannot see the deductions.
Not printing the APMC licence number on pattis issued to farmers.

Agricultural commission agent (arhtiya) GST invoice: FAQ

Is GST payable on arhtiya commission?

Commission on sale or purchase of agricultural produce is a nil-rated support service under entry 24 of Notification 11/2017-Central Tax (Rate). Commission on processed goods is taxable.

Is market fee part of GST?

No. Market fee or cess is a state levy under APMC law, separate from GST. It should be shown as a separate line on the patti.

What SAC applies to a commission agent?

Wholesale trade services on a fee or contract basis fall under SAC 9961. The nil rate depends on the produce being agricultural produce, not on the code.

Does a mandi agent need GST registration?

Not if all income is nil-rated commission and support services on agricultural produce. Registration is needed if taxable income pushes aggregate turnover above the threshold.

Is hamali taxable?

Loading and unloading of agricultural produce is a nil-rated support service. For processed goods, it is taxable.

Sources: GST Council: Notification 11/2017-Central Tax (Rate), updated services rate table

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