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Exemption

Indirect Taxation

If a persons rents his vacant land for the purpose of cultivation of tomato which is for the purpose of converting into ketchup. Is this renting activity exempted from GST ?

Swathi Krishna

CA Final

★ 8K+

14-May-20 15:46

351

Answers (9)

No.

lala lawanya

CA Inter

★ 2K+

14-May-20 16:09

Why?

Thread Starter

Swathi Krishna

CA Final

★ 8K+

14-May-20 17:02

I think that Agricultural product is excempt from Gst but conversation of agricultural product into some other things attract gst.

lala lawanya

CA Inter

★ 2K+

14-May-20 17:06

So the renting activity is taxable

Thread Starter

Swathi Krishna

CA Final

★ 8K+

14-May-20 17:20

Yes.

lala lawanya

CA Inter

★ 2K+

14-May-20 17:26

Landlord-Rending is for the purpose cultivating of agricultural produce (tomato's) which are agricultural produce and landlord is in no way concerned on further conversion of agricultural produce. so rent received was exempted. Tenant-Conversion of tomato to ketchup qualifies as a taxable supply and attracted to GST.