GST on Agriculture

Analysis of GST on Agriculture Sector in India

Is there any  GST on Services of agriculture, forestry, fishing, animal husbandry ? What is the Rate of GST on these Services ?

yes

[ As per Sr No 455 of Annexure and Entry No 24  of Notification No 11/2017 Central Tax (Rate) Dated 28th June 2017  and Notification No 8/2017 Integrated Tax (Rate) Dated 28th June, 2017 effective from 1-7-2017  ]

Group 99861 : Support services to agriculture, hunting, forestry and fishing

 998611 : Support services to crop production

998612 : Animal husbandry services

998613 : Support services to hunting

998614 : Support services to forestry and logging

998615 : Support services to fishing

998619 : Other support services to agriculture, hunting, forestry and fishing

Rate of Nil CGST & SGST/ IGST on “Support services to agriculture, forestry, fishing, animal husbandry. “

Explanation :- “Support services to agriculture, forestry, fishing, animal husbandry” mean

(i) Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of—

(a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing;

(b) supply of farm labour;

(c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;

(d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;

(e) loading, unloading, packing, storage or warehousing of agricultural produce;

(f) agricultural extension services;

 [“Agricultural extension” means application of scientific research and know-ledge to agricultural practices through farmer education or training. ( Entry 2(vi) ) ]

(g) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce.

 (“Agricultural Produce Marketing Committee or Board” means any committee or board constituted under a State law for the time being in force for the purpose of regulating the marketing of agricultural produce.[ Entry 2(viii)] )

[ Note : All these Services specified in Clause (i) of this Explanation are also Exempt from GST : vide  Entry No  54 of   Notification No 12/2017 Central Tax (Rate) Dated 28th June 2017  and Notification No 9/2017 Integrated Tax (Rate) Dated 28th June, 2017  ]

ii) Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables.

 [ Note : All these Services specified in Clause (iii) of this Explanation are also  Exempt from GST vide Entry No  55 of  Notification No 12/2017 Central Tax (Rate) Dated 28th June 2017  and Notification No 9/2017 Integrated Tax (Rate) Dated 28th June, 2017  ]

(iii) Carrying out an intermediate production process as job work in relation to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce.

Agricultural produce” means any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market .[ para 2 (vii)of Notification No 11/2017 Central Tax (Rate) Dated 28th June 2017  and Notification No 8/2017 Integrated Tax (Rate) Dated 28th June, 2017, effective from 1-7-2017. ]

[ Note : All these Services specified in Clause (ii) of this Explanation are also Exempt from GST Entry No  57 of   Notification No 12/2017 Central Tax (Rate) Dated 28th June 2017  and Notification No 9/2017 Integrated Tax (Rate) Dated 28th June, 2017 effective from 1-7-2017 ]

No GST on Vacant Land Leasing for Support Services

Refer Govt Press Release  GST on farmers : Govt Clarification 28.05.2018

Is Loading and unloading of goods other than Agriculture produce is exempt from GST

“Services by way of loading, unloading, packing, storage or warehousing of rice”  is exempt from GST .

This service falls under heading 9967 or 9985

Heading 9967 : Supporting services in transport

Group 99671 : Cargo handling services

Group 99672 : Storage and warehousing services

Group 99673 : Supporting services for railway transport

Group 99674 : Supporting services for road transport

Group 99675 : Supporting services for water transport (coastal, transoceanic and inland waterways)

Group 99676 : Supporting services for air or space transport

Group 99679 : Other supporting transport services

Heading 9985 : Support services

Group 99851 : Employment services including personnel search, referral service and  labour supply service

Group 99852 : Investigation and security services

Group 99853 : Cleaning services

Group 99854 : Packaging services

Group 99855 : Travel arrangement, tour operator and related services

Group 99859 : Other support services

Is there any exemption from GST for Services of Animals and Birds ?

“ Services by a veterinary clinic in relation to health care of animals or birds.” is exempt from GST

This service falls under heading 9983

Group 99835 : Veterinary services

Group 998351 : Veterinary services for pet animals

Group 998352 : Veterinary services for livestock

Group 998353 : Other veterinary services nowhere else classified

[ Entry No  46   Notification No 12/2017 Central Tax (Rate) Dated 28th June 2017  and Notification No 9/2017 Integrated Tax (Rate) Dated 28th June, 2017, effective from 1-7-2017.]

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