What if a agriculturist sold agriculture produce along with other product sold in his shop. Can we say the agricultural produce as non taxable supply or it is neither a taxable supply nor the non taxable supply
This is important because if the agricultural produce is not taxable supply then that supply will be included in the the limit of 20 lacs. For eg: if supply of other product in shop is Rs 10 lacs and supply of agricultural produce is 11 lacs then agriculturist is a taxable person.
Any clarification by the government?
6 Replies
Mr. Singh
(497 Points)
Replied 04 September 2017
First thing please maintain 2 Bill books One for bill of supply ( For all non taxable supply like agricultural goods etc. ) And second for Tax invoice ( For taxable goods supply ) , And maintain them separately ,In GST return fill taxable supply in taxable column and Tax free in tax free column , I have some clients who deals in seeds and pesticides , Here seeds are exempt but pesticides are taxable so I am also using the above procedure
Archit Goel
(Student)
(96 Points)
Replied 04 September 2017
Mr. Singh thanks for the input, but if the income from pesticide is 17 lacs and income from seeds 5 lacs i. e. 22 lacs turnover which makes your pesticides income chargeable to GST. Similarly think about the farmer who has his own shop and he sells his agriculture produce and other products. So it will be really a hardship for farmer if his agriculture income is aggregated for the purpose of exemption of rs 20 lacs.
Mr. Singh
(497 Points)
Replied 05 September 2017
Yes you are right, But we have to follow the rules and regulation , I have client who deals in computer with turnover of RS.70 lac but he also provide some repairing services of5-6 Lac , Previously he was filing only vat return ( Due to threshold limit he was no registered under service tax ), In service he was earning better than the sales , But now whenever he raise a GST invoice for services His service charge increase from 1000 to 1180 So no one accept GST invoice and no one pay GST amount His most customers belongs to residential area so they can't take itc , So his business is strongly impacted after GST , Our govt making rules just to secure their own earning , And they are avoiding condition of small and medium businessman's in india
Salil
(consultant)
(4 Points)
Replied 24 April 2018
2 points in context to the above
1) if farmer does exclusively agriculturist work he is not require to take registration
However if farmer do any of the business along with agriculturist he may required to registration
2) The most important, such agriculture supply will not be clubbed in aggregate turnover while computing the limit of₹20 lakh\10 lakh which is required threshold limit for registration
Salil
(consultant)
(4 Points)
Replied 24 April 2018
Reading section 23 CGST ACT::
Illustration for Sec 23(1)(a) -:
#exclusive non taxable supply ₹ 20lakh - no registration req
# non taxable supply ₹15 lakh and other taxable supply ₹5lakh - total ₹20 lakh - registration is required
Illustration for 23(1)(b)
#exclusively agriculturist ₹20lkh - no registration required
# agriculturist ₹20 lakh and other taxable supply ₹5lakh - total ₹25 lakh - then also no registration req
# agriculturist ₹20lakh And other tax supply ₹20 lakh - total ₹40 lakh - Registration is required
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