sir, my client has traders, sell rice to people. now gst is liable or exempt?. some one says rice is exempt you wil get affidavit, otherwise taxable. now I am trader gst is exempt or not sir? pls clarify sir
If the Rice is being sold under a Registered Brand Name ( like India Gate, Fortune etc ), then it is Taxable. The applicable Rate of GST is 5%.
However if no Brand Name is associated ( Non-Brand Items ), then it is EXEMPTED vide Notification No. 2/2017 - Central Tax ( Rate ), dated 28.06.2017. GST Not applicable. It's an Exempt Supply. Moreover as per the Provision of Section 23(1) of the CGST Act 2017, Person's dealing in Exclusive Supply of Exempt Goods are not liable to take GST Registration.
Then if his Aggregate Turnover exceeds Rs. 40 lakhs ( assuming him to be dealing in EXCLUSIVE SUPPLY OF GOODS ), he has to opt for GST Registration. Aggregate Turnover includes both Exempt as well as Taxable Supplies.
Then the Trader needs to collect GST on Goods supplied by him according to the GST Rates prescribed under Notification No. 1/2017 - Central Tax ( Rate ), dated 28th June 2017 as amended from time to time.
For Exempted Goods, he will not collect GST. He needs to issue Invoice cum Bill of Supply when both Taxable and Exempted Goods are supplied together.
As far as the Rice is concerned, as replied earlier if it is Branded Rice then GST @ 5% is applicable. If Non-Branded Rice, No GST applicable.