Gst on agricultural services

This query is : Resolved

Nirmal Sebastian (Querist)
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29 August 2018 Sir,
We a registered proprietorship, done an agricultural services (labour supply, land leveling using rented machinery, cultivation, planting, protecting,harvesting etc) to unregistered party.

While invoicing the same to party, is it taxable or exempted under GST?
If taxable what is the percentage ?
What is the SAC Code?

Regards
Nirmal

CA Anita Bhadra

CA Anita Bhadra (Expert)
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29 August 2018 Vide Exemption Notification No.8 & Notification No. 9 of IGST Law, support services to agriculture, forestry, fishing, animal husbandry are exempt from the levy of GST.
For the purpose of these Notifications, support services to agriculture means:-
(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;

Agriculture, as a whole, is not exempt from levy of GST and its only certain support services pertaining to agricultural activities which are exempt under GST.