GSTR-1 for Commission Agents (Arhtiyas): Step-by-Step Filing Guide 2026

Quick Summary: A commission agent (Arhtiya/Aadhatia) must file GSTR-1 monthly or quarterly reporting their commission (Arhat) income under SAC code 9986 at 5% GST. The sale of agricultural produce on behalf of the farmer is not the Arhtiya's supply — only the commission/Arhat earned is their taxable supply. Fresh agricultural produce sold by farmers is Nil-rated under GST Schedule I.

Filing GSTR-1 as a commission agent is one of the most misunderstood aspects of GST compliance in Indian mandis. Most arhtiyas either over-report (accidentally reporting the farmer's produce sale as their own turnover) or under-report (missing commission income). Both create serious compliance risks.

This guide is written specifically for commission agents — the Kacha Arhtiya (Aadhatia) operating in APMC regulated markets across India.

Is a Commission Agent Required to Register for GST?

Under the GST Act, a commission agent must register for GST if their commission income (Arhat) exceeds ₹20 lakh in a financial year (₹10 lakh for special category states). This is a common source of confusion:

The farmer's produce value does NOT count toward the Arhtiya's GST turnover limit. The Arhtiya never owns the goods — they are a facilitator.
Only the Arhat (commission) earned counts toward the ₹20 lakh registration threshold.
However, if the Arhtiya is a del credere agent (personally guarantees the buyer's payment) or acts as a Pakka Arhtiya (takes title to the goods), different rules apply.

⚠️ Important: The GSTN portal requires commission agents to mandatorily register regardless of turnover if they make supplies on behalf of other principals (Rule 7, GST Registration). Always consult your GST practitioner for your specific situation.

The SAC Code for Commission Agent (Arhtiya) Services

Service Description	SAC Code	GST Rate	Notes
Commission on sale of agricultural produce (F&V, Grains, Pulses)	9986	5%	SAC 9986: Support services to agriculture, hunting, forestry, fishing
Hamali / Loading-Unloading services	9967	5%	If separately billed; often Nil if part of exempt services
Weighing (Tulai) services	9986	Nil / 5%	Nil if for farmer's benefit; 5% if separately charged commercially
Cold storage rent (if applicable)	9967	18%	GST applies on commercial cold storage rental
Transport (Bhada) billed to farmer/buyer	9965	5%	GTA rules apply; reverse charge may apply

What to Report in GSTR-1: The Arhtiya's Exact Taxable Supplies

This is where most commission agents get confused. Here is the definitive answer on what goes into your GSTR-1 as an Arhtiya:

What is Your Taxable Supply?

✅ Arhat (Commission) earned on every sale — at 5% GST under SAC 9986
✅ Any separately charged services (cold storage, loading, weighing) at applicable rates
❌ NOT the farmer's produce sale value — this is the farmer's supply, not yours
❌ NOT the APMC Cess / Mandi Shulk collected — this is a pass-through, not your income

Example: What to Enter in GSTR-1 for a Month

  Your mandi handled ₹1 crore in produce sales in June 2026

  Arhat at 5% average = ₹5,00,000 (your commission income)

  Your GSTR-1 should show:

  Taxable Supply (SAC 9986): ₹5,00,000

  GST @ 5% = ₹25,000 (CGST ₹12,500 + SGST ₹12,500 for intrastate)

  ❌ WRONG: Reporting ₹1 crore as your taxable turnover

  ✅ CORRECT: Reporting only ₹5,00,000 (your commission/Arhat income)

Step-by-Step: Filing GSTR-1 as a Commission Agent

Step 1: Identify Your Invoice Type

Commission agents issue Tax Invoices to buyers for their commission services (if GST registered). If the Arhtiya charges commission to the farmer (deducted from Patti), that is a B2C supply. If billing to a registered firm (trader), it is B2B.

Step 2: Classify Your Supplies Correctly

B2B supplies: Fill in Table 4A of GSTR-1 with GSTIN of the buyer (if they're GST registered and you're invoicing them for commission)
B2C supplies: Fill in Table 5 (aggregate B2C supplies below ₹2.5 lakh) or Table 6 (B2C large invoices above ₹2.5 lakh)
Nil-rated/Exempt supplies: Fresh agricultural produce sold is Nil-rated. Report in Table 8A of GSTR-1 if you were also selling produce in your own name

Step 3: Export Data from MandiGrow

MandiGrow generates a GSTR-1 ready export directly from your recorded transactions:

Go to Finance → GST Reports → GSTR-1 Export
Select the filing period (monthly or quarterly)
Review: Only your commission income (SAC 9986) appears as taxable supply
Download as JSON (for direct GSTN portal upload) or Excel (for your CA's review)
Upload to GSTN portal under File Returns → GSTR-1

Step 4: Due Dates — Monthly vs Quarterly

Scheme	Who Qualifies?	Due Date
Monthly GSTR-1	Turnover above ₹5 crore	11th of next month
Quarterly GSTR-1 (QRMP Scheme)	Turnover up to ₹5 crore	13th of month after quarter end
IFF (Invoice Furnishing Facility)	QRMP taxpayers, monthly B2B invoices	13th of following month

Common GSTR-1 Mistakes by Commission Agents

Reporting produce sale value as your turnover: The biggest and most common mistake. You earned ₹5 lakh commission on ₹1 crore sales — ₹5 lakh is your turnover, not ₹1 crore.
Forgetting to report Hamali charged separately: If you charge Hamali and Tulai as separate line items on invoices, they may be taxable at 5% and must appear in GSTR-1.
Not obtaining buyer GSTIN for B2B invoices: For registered traders, always collect GSTIN and issue a proper Tax Invoice — this allows the buyer to claim ITC and builds long-term business relationships.
Missing export-eligible transactions: If you sell to exporters or export commodity directly, zero-rated supply rules apply. File LUT (Letter of Undertaking) and report in Table 6A.
Filing commission as B2C when it is B2B: This deprives your buyer of ITC and is a reconciliation issue during scrutiny.

What SAC code does a commission agent use for GST filing?

A mandi commission agent (Arhtiya) uses SAC code 9986 — "Support services to agriculture, hunting, forestry, fishing, and related activities" — for their commission (Arhat) income. The GST rate on this service is 5% (2.5% CGST + 2.5% SGST for intrastate supplies). This is different from the produce itself, which is fresh agricultural produce and is Nil-rated under GST.

Do arhtiyas need to file GSTR-1 every month?

Arhtiyas (commission agents) whose annual turnover exceeds ₹5 crore must file GSTR-1 monthly by the 11th of the following month. Those with turnover up to ₹5 crore can opt for the QRMP (Quarterly Return Monthly Payment) scheme and file GSTR-1 quarterly, by the 13th of the month after the quarter ends. However, they must still report B2B invoices monthly via the Invoice Furnishing Facility (IFF).

MandiGrow automatically separates your commission income from produce sales and generates GSTR-1 ready data with one click. Start your free trial and be GST-compliant from day one.