GST Clarification on Misleading News on Farming and Agriculture


We have a new press release from the Central Board of indirect Taxes and Customs, which provide GST Clarification on misleading news circulation in the press recently.

It brought to notice that fake news circulating regarding certain changes have been made in the GST law under which farmers will have to register under GST.  Also, they will have to pay 18% GST when they rent out their land.

GST Clarification on Misleading news pic

The government further clarifies in the said release that there have been no changes in the GST law and taxation system relating to farmers since July 1, 2017, when GST came into force.

Therefore below-given services are still exempt from GST and no need to take GST registration for providing below given services.  At the same time, these services are exempt from GST, hence no tax to be paid.

List of Agriculture Services Exempt from GST:

A) Services to agriculture

B) Services to forestry

C) Services to fishing or services to animal husbandry

D) Renting of land for agriculture, Renting of land for forestry, renting of land for fishing

E) Renting of land for husbandry on batai (share cropping)

F) Agriculturist is exempt from taking GST registration

Definition of Agriculturists:

Agriculturist is an individual or an HUF, Who undertakes to :

A) cultivate land by himself or his own labour

B ) by the labour of his family

C) by servants or wages payable in cash or kind

D) by hired labour under his personal supervision or the personal supervision of any member of his or within the family.

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2 thoughts on “GST Clarification on Misleading News on Farming and Agriculture

  1. This kind of misleadings on GST are 0ften happening withrespect to traders too which leads to unnecessary confusion & fear among them. I think this kind of Misleadings are purposefully spreading by anti GST mindset people to gain political advantage.

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