GST Resigtration and Taxability on Agro Products Trading

This query is : Resolved

CA VENKATASWAMY (Querist)
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07 September 2020 Hi all,

One of the Client Private Limited company is doing Trading of Agricultural Products (i.e. Buying and selling with small margins) , now Is this activity liable to GST ? If yes at what rate ? if Not because of exempted or Nil rated services then Is the GST registration is required after crossing the Threshold Limit of Rs.20 lakhs ?

Please assume client doing wholly above activity only.

praveen

praveen (Expert)
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08 September 2020 Agricultural products are usually exempted from taxes. However, you can check the same in the GST schedules to make sure its exempt, because few of the agricultural products are taxable as well. If the entire products that your client is dealing is exempt then they need not take GST registration. If there is taxable products also then they need to take the registration if the turnover crosses 40 Lakhs (threshold as applicable in your state).

But in a view of obtaining eway bills and transportation its preferable to obtain GST registration and keep proper books of account and declare the sales based on bifurcation into exempt and taxable sale.

CA Praveen M R
https://prsrglobal.in/