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?

AI Summary

GST Applies Only to Business Income, Not Agricultural Sales; Check Input Tax Credit Use Carefully. A discussion on a forum addressed whether Goods and Services Tax (GST) applies to agricultural income for individuals who also have business income. The consensus among participants was that agricultural produce is generally exempt from GST. However, both agricultural and business sales must be combined to determine if the threshold for GST registration is met. Once registered, GST applies only to taxable business income, not agricultural sales. It was also noted that Input Tax Credit (ITC) should be carefully checked to ensure it is not used inappropriately.