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GST on sale and purchase of mustard

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..... Sir/Madam I want to know about the GST involvement in sale and purchase of Mustard seeds. 1. When an customer buys mustard from the farmers to change into Mustard Oil, who will pay GST ? 2. When a government department Like Hafed purchases mustard from farmers for Oil or further sale, who will pay GST? 3. What is the rate of GST on sale on Mustard seed? 4. If someone purchases mustard from fa .....

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..... rmer, will he liable to pay GST under RCM? - Reply By KASTURI SETHI - The Reply = Mustard seed is an agriculture produce. Hence exempt. Exemption is available to the farmer and not to Hafed. For further sale by Hafed , Hafed will pay GST @5% under Chapter Heading/Sub-Heading No. 1207 50 10. Mustard seed is not covered under RCM. - Reply By KASTURI SETHI - The Reply = Pl. note that seed .....

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..... s must not be chemically treated processed. If processed and treated, seeds will not qualify as agriculture produce. - Reply By KASTURI SETHI - The Reply = For Rate of tax see Notification No.2/17-CT (R) dated 28.6.17 as amended up to 28.12.21. - Reply By KASTURI SETHI - The Reply = Sh.Rajesh Kumar Ji, AAAR Rajasthan has held that Mustard Seed is NOT Agriculture Produce. Must go thro .....

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..... ugh this decision. Extracted below:- 2019 (3) TMI 1010 - APPELLATE AUTHORITY FOR ADVANCE RULING, RAJASTHAN IN RE : SARDAR MAL COLD STORAGE ICE FACTORY - Reply By Rajesh Kumar - The Reply = Sir , it means sale of Mustard seeds is taxable @5% and if directly purchase from the Farmers, GST to be paid by recipients under RCM. Am I right sir ? - Reply By KASTURI SETHI - The Reply = Must .....

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..... ard seed is processed goods and hence not eligible as agricultural produce as per above decision. In this scenario, even farmer will pay tax under under FCM and will collect tax from the buyer and deposit with Govt. and subject to threshold exemption. No RCM as replied above. - GST on sale and purchase of mustard - Query Started By: - Rajesh Kumar Dated:- 11-4-2022 Goods and Services Tax - GST .....

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..... - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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