Seeding Growth: Amendments in GST Rates for Agricultural Seeds
Focused Amendment:
Under section 6 of the IGST Act, 2017, the Central Government, acting on Council recommendations, introduces a specific amendment in GST rates for agricultural seeds.
Altered Schedule Entry:
The amendment targets Schedule of Notification No.2/2017-Integrated Tax (Rate), dated June 28, 2017. Notably, S. No. 86 undergoes modification, impacting the taxation of seeds.
Clarification on Usage:
The revised entry (86) explicitly addresses seeds, fruit, and spores utilized for sowing purposes. It excludes seeds intended for uses other than sowing.
Effective Implementation:
Operational from October 1, 2021, the amendment aligns with the beginning of the financial year, ensuring a smooth transition in the taxation structure for agricultural seeds.
Administrative Authority Reference:
The amendment derives its authority from sub-section (1) of section 6 of the IGST Act, 2017, emphasizing adherence to legal procedures.
Historical Context:
Referring to the original notification (No.2/2017-Integrated Tax), last amended in 2019, this modification responds to the evolving needs of the agriculture sector.
Precision in Terminology:
The entry provides a clear explanation, ensuring that the amendment pertains specifically to seeds utilized for sowing, bringing clarity to the scope of the taxation change.