Interstate purchase from farmers

This query is : Resolved

Manali (Querist)
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25 April 2024 One of my client want to purchase soyabean seed from farmers (URD) in inter state (like MP and GST number in Gujarat)
Additionally, they sale the goods in local market of MP by charging IGST.
Queries in this regards:-
1) Can this transaction is feasible.
2) Can we use accumulated ITC in our credit ledger to set off this outward supply
transaction ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 April 2024 Seeds and fertilisers are a major input for agriculturist and farmers. Both seeds and fertilisers are exempt from GST. Hence, agriculturists would not have to pay GST tax on their major input.