TMI BlogGST on Rubber and CardamomX X X X Extracts X X X X X X X X Extracts X X X X ..... Party sells own produce of unprocessed: 1. Cardamom 2. Rubber Latex 3. Natural Rubber Party is registered under GST for his business activity ( Not agriculture). Is the sale of the above unprocessed items liable for GST? - Reply By ABHISHEK TRIPATHI - The Reply = Dear Prem ji, I think, they are taxable and not under the exemption notification. Refer 1/2017 and 2/2017 - CT (Rate) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By Prem Gomathy - The Reply = Dear Sir, Bur see Sec 23(1) says agriculturist to the extent of supply of produce out of cultivation of land is not liable to get himself registered. And for the purpose of registration while calculating aggregate turnover of agriculturist, turnover from supply of produce out of cultivation of land is to be excluded. Further Sec 2(7) of the CGS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Act says that agriculturist means an individual or HUF who undertakes cultivation of land by own labour or hired labour. So for cardamom, are the rates prescribed for sale of processed cardamom or own produce? - Reply By KASTURI SETHI - The Reply = Sh.Prem Gomathy Ji, I humbly opine that you have not read the definition of 'agriculturist or cultivator(farmer) between the lines. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST @ 5% is leviable on unprocessed cardamom ( HSN 090831 ), unprocessed rubber latex ( HSN 400110 ) and unprocessed natural rubber ( 4001 21 , 400122 , 400129 ), if supplied/sold by other than agriculturist/cultivator/farmer or their hired labour or the family members of farmer. In other words, no exemption is available to dealer, despite being unprocessed. The definition of 'ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riculturist' is restrictive and only those persons who are directly engaged in cultivation of land are eligible for exemption. Section 2 (7) of CGST Act, 2017 explains as under :(7) agriculturist means an individual or a Hindu Undivided Family who undertakes cultivation of land - (a) by own labour, or (b) by the labour of family, or (c) by servants on wages payable in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash or kind or by hired labour under personal supervision or the personal supervision of any member of the family; In order to avail exemption, goods must not only be unprocessed (if processed, character of goods must not be changed), but also required to be cleared/supplied by the agriculturist or cultivator. In other words, you may by farmer. Here the clearance from the premises of ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riculturist or cultivator has a significance. Last but not the least, whenever, Sh.Abhishek Tripathi, sir opines treat the reply as fool-proof. In other words, dive deep into his reply. - GST on Rubber and Cardamom - Query Started By: - Prem Gomathy Dated:- 2-9-2021 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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