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 agricultural land is taxable when cultivation is carried out by a partnership firm that cannot be an agriculturist. Leasing agricultural land to a partnership firm for cultivation is taxable under GST because the statutory definition confines the status of agriculturist to individuals and HUFs; a partnership firm cannot be an agriculturist and thus leasing to it attracts tax.