TaxTMI 
TaxTMI 
Suppose I take an agricultural land on lease and produce agricultural commodity (GST to the trader will be 5%) and sell the same to a wholesaler. Experts, please elucidate on the GST and Income-tax implications. Would I be termed as an agriculturist and is the produce when sold in the market exempt from GST? Is there any other implication to this. Thanks
Agricultural land taken on lease and produce sold directly to wholesalers
26 Jun 2026 
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Agricultural land lease and self-cultivation can support GST exemption on primary produce and agricultural income treatment.
Lease of agricultural land for cultivation may be exempt from GST, and a lessee who personally cultivates crops can be treated as an agriculturist even without owning the land. Sale of primary agricultural produce grown on such leased land is generally outside GST if only ordinary marketable processes are undertaken and the essential character of the produce is not changed. Income from cultivation and sale of such produce is generally agricultural income exempt under the Income-tax Act, subject to the applicable conditions and records of cultivation. (AI Summary)
Lease of agricultural land for cultivation may be exempt from GST, and a lessee who personally cultivates crops can be treated as an agriculturist even without owning the land. Sale of primary agricultural produce grown on such leased land is generally outside GST if only ordinary marketable processes are undertaken and the essential character of the produce is not changed. Income from cultivation and sale of such produce is generally agricultural income exempt under the Income-tax Act, subject to the applicable conditions and records of cultivation. (AI Summary)