No change in the GST law and taxation relating to farmers since July, 2017, clarifies Finance Ministry

New Delhi, May 29 (KNN) There has been no change in the Goods & Services Tax (GST) law and taxation related to farmers, clarified the Ministry of Finance.

The Ministry said ever-since the GST was implemented in July 2017 there has been no change in the GST law and taxation relating to farmers.

The Ministry clarified that the news reported in certain section of the Press that certain changes have been made in GST law relating to farmers, which will come into force with effect from 1st June, 2018 according to which farmers would be required to take registration and pay GST of 18% when they lease out their land, is factually incorrect and misleading.

Support services to agriculture, forestry, fishing or animal husbandry are exempt from GST. 

Such exempted support services include renting or leasing of vacant land with or without a structure incidental to its use. Thus, renting or leasing of land by farmers for agriculture, forestry, fishing or animal husbandry on batai (share cropping) or otherwise is also exempt from GST.

Further, agriculturists are also exempted from taking GST registration.  Agriculturist has been defined to mean an individual or an HUF who undertakes cultivation of land- by own labour; by the labour of family; and by servants or wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family, Ministry of Finance.