05/06/2026
Pigmy Agents ( Deposit collector) = Employees. Commission = Wages. GST = NIL โ
Karnataka High Court just quashed GST show cause notices on a Regional Rural Bankโs Pigmy Agents.
๐ Key Findings:
โ Pigmy Agents are WORKMEN, not Business Facilitators
โ Commission paid = Wages (settled by Supreme Court)
โ Schedule III exempts employee services from GST entirely
โ RCM under Section 9(3) does NOT apply
โ All 4 SCNs quashed for lack of jurisdiction
๐ Case: Karnataka Vikas Grameena Bank vs. DCCT
(2026) 41 Centax 372 (Kar.) | 08-04-2026
Substance over form โ always.
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