Agriculture

[Guest]

Sir,I take land on lease to do agriculture by forming a partnership firm.My question is.

1. under GST guidelines I hear that taking land on lease will invite tax.

2.will I be able to continue farming under a partnership firm

Rohit Goyal

[Ganeshan Kalyani]

It is taxable in your case.

[Himansu Sekhar]

Leasing will attract get

[Guest]

Under new CGST Bill passed on 31/03/2017, definition of Agriculturist is defined in which only Individual and HUF can only be an Agriculturist and also conditions are specified.

A partnership firm or any other person though they cultivate cannot be an agriculturist.

 

[Ganeshan Kalyani]

Yes, partnership firm cannot be a agriculturist.

AI Summary

Leasing Land for Agriculture Taxable Under GST; Partnership Firms Not Recognized as Agriculturists per New CGST Bill An individual inquired about the implications of the Goods and Services Tax (GST) on leasing land for agricultural purposes under a partnership firm. Four responses clarified that leasing land is taxable under GST. Additionally, it was noted that according to the new CGST Bill, only individuals and Hindu Undivided Families (HUF) qualify as agriculturists, excluding partnership firms from this classification. Therefore, while farming can continue under a partnership, it will not be recognized as an agriculturist entity for tax purposes.