Tax applicability on sale of agricultural produce

[Rajat Gupta]

Hello, one of my clients is registered under GST as a trader. He also has an agricultural land to his name. He produces mustard seeds (falls under 5% slab) and takes them to the grain market for auction through kaccha arhatia. The agent issues a Form J to him showing the particulars of the buyer, seller and underlying goods.

My query is, can he be said to be an agriculturist in terms of GST law to the extent of his produce and consequently avail exemption from paying tax on such sale?

Note: Form J is normally issued by an arhatia to the farmer who brings his produce in the grain market.

AI Summary

Agriculturist status under GST and exemption on sale of agricultural produce through a kaccha arhatia. Whether a GST-registered trader who owns agricultural land and produces mustard seeds can be treated as an agriculturist in relation to that produce, so as to claim exemption from GST on its sale through a kaccha arhatia in the grain market. The query also refers to Form J issued by the agent, showing the particulars of the buyer, seller and underlying goods, and asks whether that supports exemption on the sale of the agricultural produce.