GST registration is required or not ?

As per Notification No. 2/2017 C.T. (Rate), most o
f the agriculture produce are exempted under GST. Thus the supporting services related to the agriculture produce are also exempted.

But the matter of consideration here is whether your product clearly satisfies the terms of Agriculture Produce???

As per Notification No 12/2017,
“Agricultural Produce” means any produce out of cultivation of plants and rearing of all life
forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar
products, on which either no further processing is done or such processing is done as is usually done
by a cultivator or producer which does not alter its essential characteristics but makes it marketable
for primary market.

In simple terms we can say that if any process is done on such agriculture produce that is usually done to make it fir for use or to make it ready for sale. Or without such process that produce will not become fit for human consumption. Then the final output after that process would still be considered as Agriculture Produce and will be Exempted under GST.

But, if such additional process changes the Original Form of such produce or the produce could be sold in market for Human consumption without carrying out that particular process. Then the final output of that process would not be considered as Agriculture Produce and will be taxable under GST.

So, if you deal in with pure Agriculture Produce whose original form has nit been changed then you will not be required to obtain Registration under GST, considering your Service as a support service in relation to Agriculture Produce i.e. exempted goods.

Dear Himanshu Garg sir.. what if final agriculture product is sold in packings with mrp tagging like packets of wheat ..as in this case the party is a trader and not essentially a farmer ? pls guide further.

As per clause 54 of Notification No 12/2017, services by way of loading, unloading, packing, storage or
warehousing of agricultural produce is Exempted from GST. Further as per Notification No. 2/2017 wheat is also Exempted, provided they are not put up in a unit container AND bearing a registered brand name.

So as per my opinion, if the goods are packed under a registered brand name. It is not exempted attracting GST @ 5%. But if they are packed just for the purpose of making them fit for transportation without containing a Registered Brand name, then it will be Exempted.

If the Wheat is being sold under a Registered Brand Name, then GST Registration is required since it is Taxable under GST @ 5%.

Whereas if it is sold without a registered Brand Name, then GST Registration is not required since Wheat is an Exempted Goods which is covered under the Mega Exemption Notification No. 2/2017 - Central Tax ( Rate ), dated 28.06.2017.

Also, As per the Provision of Section 23(1) clause (a) of the CGST Act 2017, Person's dealing in EXCLUSIVE SUPPLY OF EXEMPTED GOODS are not required to take Registration under GST.

Yes 👍

Thank-you so much Himanshi Garg mam, and all experts, I got all my doubts very clear. one more doubt I had plz solve this also.