GST

No change in the GST law and taxation relating to farmers since July 2017

No change in the GST law and taxation relating to farmers since July, 2017; Support Services to agriculture, forestry, fishing or animal husbandry are exempt from GST; Agriculturists are also exempted from taking GST Registration. 
Ministry of Finance
Press Release
28th May, 2018
It has been reported in certain section of the Press that certain changes have been made in GST law relating to farmers, which will come into force with effect from 1st June, 2018 according to which farmers would be required to take registration and pay GST of 18% when they lease out their land.  

This news is factually incorrect and misleading. There has been No Change in the GST law and taxation relating to farmers since July, 2017, when GST was implemented.  Support services to agriculture, forestry, fishing or animal husbandry are exempt from GST.  Such exempted support services 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.

Further, agriculturists are also exempted from taking GST registration.  Agriculturist has been defined to mean an individual or an HUF who undertakes cultivation of land-

  • by own labour
  • by the labour of family
  • 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.
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