Agricultural Activities Exempted from GST
Services relating to the cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of—
(a) agricultural operations directly related to the production of any agricultural produce including cultivation,
harvesting, threshing, plant protection or testing;
(b) supply of farm labour;
(c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
(d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
(e) loading, unloading, packing, storage or warehousing of agricultural produce;
(f) agricultural extension services;
(g) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce.
- Agricultural produce: means any produce out of cultivation of plants and
rearing of all life forms of animals, except the rearing of horses, for food,
fibre, fuel, raw material or other similar products, on which either no further
processing is done or such processing is done as is usually done by a
cultivator or producer which does not alter its essential characteristics but
makes it marketable for the primary market.
- Agricultural Produce Marketing Committee or Board: means any
committee or board constituted under State law for the time being in force
for the purpose of regulating the marketing of agricultural produce
- Services by way of transportation by rail or a vessel from one place
in India to another of agricultural produce.
- Services provided by a goods transport agency, by the way of transport in a goods carriage of agricultural produce
- Agricultural extension: means application of scientific research and
knowledge to agricultural practices through farmer education or training.
Source: ICAI Study Material