In order to boost the agriculture sector, the Finance Ministry has clarified applicability of the Goods and Services Tax (GST) on farmers. It has said that support services like renting or leasing of land by farmers for agriculture, forestry, fishing or animal husbandry are exempt from the ambit of new indirect tax. It also said that agriculturists are exempted from GST registration and added that there has been no change in the GST law and taxation relating to farmers since July, 2017, when GST was implemented.
As per the ministry, exempted support services are 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.
Besides, agriculturist has been defined to mean an individual or an HUF (Hindu Undivided Family) who undertakes cultivation of land- by own labour or by the labour of family or 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.
