Padmanabhansp@gmail.com
This query is : Resolved
s.padmanabhan
(Querist)
10 March 2021
There is no GST for layer farm eggs. Is it mandatory to register GST and file monthly return if the turnover is above 200 lakhs per annum
09 July 2024
If the turnover of your business, which is a layer farm producing eggs, exceeds ₹20 lakhs (₹10 lakhs for special category states), registration under GST becomes mandatory as per GST regulations. Here’s a more detailed breakdown:
1. **Mandatory GST Registration**: GST registration is mandatory if your aggregate turnover (which includes all taxable, exempt, and export turnover) exceeds the threshold limit of ₹20 lakhs in a financial year (₹10 lakhs for special category states). This turnover threshold applies to businesses involved in the supply of goods or services, including agricultural products like eggs from layer farms.
2. **Exemption for Agricultural Sector**: Eggs produced by a layer farm fall under the agricultural sector, and as of current GST regulations, they are exempt from GST. This means that no GST is levied on the sale of eggs from a layer farm.
3. **Impact of Exemption on Registration**: Even if your turnover from egg sales exceeds ₹20 lakhs annually, since eggs are exempt from GST, you would not collect GST from your customers nor pay GST on your sales. However, you would still be required to register under GST and file monthly, quarterly, or annual returns depending on your turnover, even if you are dealing with exempted goods.
4. **Input Tax Credit (ITC) Consideration**: If you voluntarily register under GST, you can claim input tax credit (ITC) on inputs such as feed, medicines, equipment, etc., used in the production of eggs. This can be beneficial for reducing costs.
In summary, while there is no GST on eggs from layer farms, mandatory GST registration applies if your turnover exceeds the threshold limit. It’s advisable to consult with a GST expert or tax advisor to understand the specific requirements and implications for your layer farm business.
1. **Mandatory GST Registration**: GST registration is mandatory if your aggregate turnover (which includes all taxable, exempt, and export turnover) exceeds the threshold limit of ₹20 lakhs in a financial year (₹10 lakhs for special category states). This turnover threshold applies to businesses involved in the supply of goods or services, including agricultural products like eggs from layer farms.
2. **Exemption for Agricultural Sector**: Eggs produced by a layer farm fall under the agricultural sector, and as of current GST regulations, they are exempt from GST. This means that no GST is levied on the sale of eggs from a layer farm.
3. **Impact of Exemption on Registration**: Even if your turnover from egg sales exceeds ₹20 lakhs annually, since eggs are exempt from GST, you would not collect GST from your customers nor pay GST on your sales. However, you would still be required to register under GST and file monthly, quarterly, or annual returns depending on your turnover, even if you are dealing with exempted goods.
4. **Input Tax Credit (ITC) Consideration**: If you voluntarily register under GST, you can claim input tax credit (ITC) on inputs such as feed, medicines, equipment, etc., used in the production of eggs. This can be beneficial for reducing costs.
In summary, while there is no GST on eggs from layer farms, mandatory GST registration applies if your turnover exceeds the threshold limit. It’s advisable to consult with a GST expert or tax advisor to understand the specific requirements and implications for your layer farm business.
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