Goods and Services Tax

H’ble Finance Minister has tabled the CGST Law in Lok Sabha which is due for discussion today. As per section 9(4) of the Central GST Act it has been proposed that the purchaser of agricultural produce shall be liable to pay tax in lines of purchase tax levied in present tax regime. In such a scenario where a registered company buys agricultural produce from a farmer, GST has to be paid. Although the rate for GST for produce cultivated out of land has been proposed at zero, the segments like poultry farming, dairy farming, animal rearing are likely to be taxed at higher rate. In such a scenario there shall be compliance involved in case of agriculture. In the law tabled in the parliament the definition of agriculture has been deleted and it has been prescribed that agriculture would mean the produce cultivated out of land. It has also been proposed that apart from agriculture if a registered person buys any goods or services from unregistered persons, the receiver shall be ...