GST for compensation paid to Farmers

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Dear experts

We are electrical contractors carrying out transmission line works. In this work we have to pay compensation to farmers where ever our towers are installed and also crop compensation and will be collected from Our client.

Please let me is this payment attract GST
Replies (4)
I think compensation will not come under GST
my view if gst is payable it will be on reverse charge basis sev 9(3) is not applicable now sec 9(4) at present it is posponed. however if we gather the logic as give in press release 78/2017 the transaction is not in the furtherance of business so no gst
Mr. vipin
will it not be for a furtherance of business. We pay compensation to farmer for getting his NOC to install transmission line tower in his land. May be we consider this as taking his land on a lease

Actually I wanted to be completely certain and don't want to get notices from tax authorities

Dear

The compensation is payable to farmer and in his hands it is not against furherance of business. Accordingly it is not taxable in his hands. Just like jewellery sold by a housewife to a jeweller.


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