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purchase from farmer

Swapnil Tayal (Director) (32 Points)

20 June 2017

Sir is gst applicable on farmers producing kapas (cotton)?

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20 Replies

amit ambare (artical assisstant) (71 Points)
Replied 20 June 2017

No,

GST Excluding The Agriculture Product eg. Cotton, sugar can Etc. But Farmer Sale the Produt after Proccessing ( not natural proccessing) then GST applicable on thise product. and Farmer need to get GST number Respect to its Turnover.

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Swapnil Tayal (Director) (32 Points)
Replied 20 June 2017

@ amit Sit. .. Thanks ... means a ginner (person buying kapas for processing) doesn't have to deduct under RCM from farmers .... as Kapas and all agri produce is not taxable

amit ambare (artical assisstant) (71 Points)
Replied 21 June 2017

Absolutely Right Swapnil Sir.

Swapnil Tayal (Director) (32 Points)
Replied 21 June 2017

@ Amit Sir.... can I have your contact no. ....

Swapnil Tayal (Director) (32 Points)
Replied 21 June 2017

@ amit sir .... As an oil extractor .... Cotton seed (an input) is taxable and from output ( cotton seed oil and cotton seed cake) only cotton seed oil is taxable cotton seed cake is tax free.....in this case input tax amount is more than output tax amount .... So will the balance amount be refundable

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amit ambare (artical assisstant) (71 Points)
Replied 22 June 2017

Sir,

If Your Finished Goods is Taxbale then you 100% get input tax credit on your RM, But your FG is Taxfree then you cannot get input tax credit on your RM.

Hence you get ITC on cotton Seeds but you cannot get ITC on cotton cake also you cannot get Refund on Taxfree goods i.e Cotton Seeds.

Thise Rule also in the GST

I hope you Satisfy.

Thank You

MY Contact 9503032236

Chetan Bhojani 'cb' (2 Points)
Replied 26 June 2017

Sir can you share any govt clarification on the same? Here CA are telling that there is RCM on kapas purchase from Farmers.

amit ambare (artical assisstant) (71 Points)
Replied 27 June 2017

NO this is wrong! Agriculture product is out from GST and kapas is pure agriculture product so there is levy of GST. if levy is not then how can Tax Liabilities

Ajay Agarwal (CA-Student) (134 Points)
Replied 06 August 2017

Dear Experts

If Agri crop Purchase by commission agent from farmer Where to show in gstr 3b return because on this RCM not apply.

Thanks

(Guest)

dear sir, what if in case when goods bought from farmers are taxable under gst for example:- cummin seed, castor, rmseed, mustard etc other oil seeds. does farmers comes under urd category in case and rcm is applicable on same in gst or not.

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(Guest)

1 Like

hitesh yadav (6 Points)
Replied 07 September 2017

Dear sir hum farmer se taxable agree products purchase krte Hai or register dealer ko sales krte he too tax liability rcm me aaygi ya sales pr tax pay kre... please sir solve my problen