I am trading on crop mainly wheat, My turnover is around 50-60 lakhs annually.
Please suggest me is GST Registration is mandatory for me or not.
and if yes then in which tax slab i will be charged and what will be the percentage of tax.
Please explain in detail.
Answer and suggestions welcomed ASAP.
Thank-you.
As per Notification No. 2/2017 C.T. (Rate), most o
f the agriculture produce are exempted under GST. Thus the supporting services related to the agriculture produce are also exempted.
But the matter of consideration here is whether your product clearly satisfies the terms of Agriculture Produce???
As per Notification No 12/2017,
“Agricultural Produce” means any produce out of 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, on which either no further processing is done or such processing is done as is usually done
by a cultivator or producer which does not alter its essential characteristics but makes it marketable
for primary market.
In simple terms we can say that if any process is done on such agriculture produce that is usually done to make it fir for use or to make it ready for sale. Or without such process that produce will not become fit for human consumption. Then the final output after that process would still be considered as Agriculture Produce and will be Exempted under GST.
But, if such additional process changes the Original Form of such produce or the produce could be sold in market for Human consumption without carrying out that particular process. Then the final output of that process would not be considered as Agriculture Produce and will be taxable under GST.
So, if you deal in with pure Agriculture Produce whose original form has nit been changed then you will not be required to obtain Registration under GST, considering your Service as a support service in relation to Agriculture Produce i.e. exempted goods.
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