TaxTMI 
TaxTMI 
I need an opinion for nursery income for following transactions.
1) Selling of Live Plants
2) Selling of Fruits & Vegetables
3) Selling of Live Plants along with Ceramic Pots
GST on Nursery Income
06 May 2020 
7 Replies 
23928 Views Asked by
GST on nursery supplies: classification of plant and produce sales can determine exempt or taxable treatment, check packaging.
Live plants and fresh fruits and vegetables are nil rated for GST, but selling live plants bundled with pots raises classification uncertainty: the bundle may be a composite supply (predominant plant retaining nil rate) or taxable at the pot rate if the pot predominates. Ceramic earthen pots may themselves be nil rated under a specific HSN, whereas plastic pots likely are not. To avoid assessment risk, sellers may charge GST on bundles, sell items separately, or seek an advance ruling. (AI Summary)
Live plants and fresh fruits and vegetables are nil rated for GST, but selling live plants bundled with pots raises classification uncertainty: the bundle may be a composite supply (predominant plant retaining nil rate) or taxable at the pot rate if the pot predominates. Ceramic earthen pots may themselves be nil rated under a specific HSN, whereas plastic pots likely are not. To avoid assessment risk, sellers may charge GST on bundles, sell items separately, or seek an advance ruling. (AI Summary)