Clarifying on the applicability of GST on farmers, the ministry said support services to agriculture, forestry, fishing or animal husbandry are exempt from the Goods and Services Tax (GST).
Exempted support services to agriculture include renting or leasing of vacant land with or without a structure incidental to its use.
“Thus, renting or leasing of land by farmers for agriculture, forestry, fishing or animal husbandry on batai (share cropping) or otherwise is ?also ?exempt from GST,” the ministry said in a statement.
It said agriculturists are exempted from GST registration.
Agriculturist has been defined to mean an individual or an HUF (Hindu Undivided Family) who undertakes cultivation of land- by own labour or by the labour of family or by servants or wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family.
“There has been no change in the GST law and taxation relating to farmers since July, 2017, when GST was implemented,” the statement added.
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