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

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.