GST on sale and purchase of mustard

[Rajesh Kumar]

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?

AI Summary

GST on mustard seeds: processed or treated seeds are taxable while genuine agricultural produce supplies remain exempt.
GST treatment depends on whether mustard seed qualifies as agricultural produce. Unprocessed, untreated seed supplied by a farmer is generally exempt. Chemically treated or processed seeds do not qualify for the exemption and are taxable supplies. Onward sales by non-farmer purchasers are taxable; reverse charge is not applicable. An advance ruling has characterised mustard seed as processed and taxable in similar facts, so liability follows normal forward charge and threshold rules.