Table of Contents
1. Should a person cultivating land and selling the produce register himself for paying GST?
Registration is not required for an agriculturist who is engaged in the supply of produce out of cultivation of land.
2. Who is an agriculturist?
Agriculturist means an Individual or HUF who undertakes cultivation of land on his own or by the labour of his family or by hired labour under the supervision of any member of his/her family.
3. Will a company or a partnership firm be considered as an agriculturist for the purpose of GST?
No, only Individuals or HUF can be considered as agriculturists for the purpose of GST.
4. Is rice considered as an agricultural produce?
Rice is not an agricultural produce as per the GST law, however, activities relating to loading, unloading, packing, storage and warehousing of rice has been exempted by a separate notification.
5. What are the basic agricultural services that has been exempted from GST?
- Services relating to cultivation of plants and rearing of all forms of animals (except horses)
- Supply of farm labour
- Processes carried out in an agricultural farm
- Loading, unloading, packing, storage or warehousing of agricultural produce.
- Agricultural extension services.
- Renting or leasing of agro machinery or vacant land for the purpose of agriculture.
6. What is agricultural produce for the purpose of GST law?
Agricultural produce means any produce out of cultivation of land or rearing of animals (except horses) on which no further processing is done. However, if certain produce requires processing to make it marketable for the primary market, such process must not alter its essential characteristics.
7. Does services provided by a commission agent for sale or purchase of agricultural produce attract GST?
No, the services provided by any agricultural produce marketing committee or board or commission agent for sale or purchase of agricultural produce is exempt from GST.
8. Who are commission agents?
Commission agents are middlemen who act as a link between the farmers and buyers who may be private traders, any government agency or an exporter.
9. Is GST applicable on cut flowers?
No, GST is not leviable on cut flowers.
10. Is tea exempted from GST?
Tea leaves are treated as an agricultural produce and exempted from GST. However, tea powder used for making the beverage is a processed product made with tea leaves and hence is taxable. Same is the case with coffee.
11. What are animal driven agricultural implements?
- Machines used in a farm to reduce human labour and enhance production are called agricultural implements which will be taxed at 12% or 28% depending upon the type of machinery.
- However, if those implements are designed to be driven by an animal, they are nil rated and no GST needs to be paid.