Sir/Madam
I want to know about the GST involvement in sale and purchase of Mustard seeds.
1. When an customer buys mustard from the farmers to change into Mustard Oil, who will pay GST ?
2. When a government department Like Hafed purchases mustard from farmers for Oil or further sale, who will pay GST?
3. What is the rate of GST on sale on Mustard seed?
4. If someone purchases mustard from farmer, will he liable to pay GST under RCM?
Mustard Seeds GST Clarified: Exempt When Bought from Farmers, 5% GST on Processed Seeds, RCM Not Applicable. A forum discussion addressed the GST implications on the sale and purchase of mustard seeds. It was clarified that mustard seeds, when purchased directly from farmers, are considered agricultural produce and are exempt from GST. However, if the seeds are chemically treated or processed, they do not qualify as agricultural produce and are subject to a 5% GST. Government entities like Hafed must pay GST on further sales. Reverse Charge Mechanism (RCM) does not apply to mustard seeds, and farmers may need to collect and remit GST if the seeds are processed. (AI Summary)
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