GST ON INCOME FROM AGRICULTURAL INCOME

[Renju Joy]

Person having business income also has agricultural income.Whether he is liable to pay GST on agricultural income?

[KASTURI SETHI]

Everybody knows agricultural produce is exempted. Agricultural income is not appropriate word used here. You are to see 'produce -wise' whether exempted or not.However, both sales/supplies have to be clubbed for computation of threshold exemption limit for the purpose of registration. After obtaining registration in the above scenario, GST is to be paid on taxable business only and not on agricultural produce sale/supply. If the concept of composite supply is brewing in your mind, then elaborate your specifically.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir.

[MUKUND THAKKAR]

Agree with Shri Kasturiji, but I am adding one more things that ITC need check not used in commonly.

[AshaKanta Sharma]

Agree.....GST is not applicable........

AI Summary

Exemption of agricultural produce: aggregate supplies can trigger GST registration, but tax applies only to taxable business supplies.
Agricultural produce is exempt from GST and must be assessed produce-wise; characterising revenue as "agricultural income" is not decisive. For registration, agricultural and business supplies are aggregated to determine the registration threshold. Once registered, GST is payable only on taxable business supplies, not on exempt agricultural produce. Consideration of composite supply and careful review of input tax credit consequences is necessary where exempt agricultural supplies coexist with taxable business supplies.