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GST applicability on cashew sale

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Sourav Das

30 Points Posted on 11 May 2023

I'm a petrol pump dealer & have GST registration, but I have some land where I cultivate cashew nut. I also sale the cashew nut to some other register dealers. on such sale GST will applicable under forward change mechanism or reverse charge mechanism?? Because front line business is sale of petrol, Disel etc. ( Non GST) & lubricants (GST) products.

Replies (7)

Quick Summary

A petrol pump dealer with GST registration is seeking clarification on whether sales of cashew nuts, cultivated on their land, fall under the forward charge or reverse charge mechanism. The discussion suggests that both businesses can operate under a single GSTIN, with GST provisions applied accordingly. It highlights that Reverse Charge Mechanism (RCM) may apply to cashew nut sales from an agriculturist to a registered person, as per Notification 4/2017 CT Rate, provided the business qualifies as an agriculturist under Section 2(7) of the CGST Act.

sabyasachi mukherjee

Profession

19978 Points Posted on 11 May 2023

If it is sold under seperate registration then let me know.

NARENDRA

ACCOUNTS MANAGER

1041 Points Posted on 11 May 2023

If your turnover is more than 40 lacs of cashew nuts & if you don't want to combine both businesses, you can get registration under gst ............... Once you take gstin no. then you can make an invoice. RCM for those who bought goods from you & when you didn't make a gst invoice .

Pankaj Rawat

GST Practitioner

29904 Points Posted on 11 May 2023

First of All yes you can do both business under one GSTN & GST provision will applicable as according to the respective busines activities.

Now come to your Query :
As per Notification 4/2017 CT rate Yes RCM Applicable on supply Cashew Nuts being supply from Agriculturist to any Registered person.

Note : As per the defination of Agriculturist defined u/s 2(7) , your business must be under Proprietary concern or HUF to be cover under Agriculturist.