Page 10 - Ch8_ EXEMPTION

All the above receipts are exclusive of GST. Compute the value of taxable supplies under GST laws for
the month of February, 20XX. [CA Inter Jan 21 Exam]

Answer:-
Particulars ₹ Reason

Services relating to rearing Nil Exempt since services relating to rearing of all life forms of
of sheeps animals, except horses, for food etc. are exempt.

Services of artificial 4,00,000 Not exempt, since artificial insemination of livestock other than
insemination of horses horses are exempt.
8,00,000 Not exempt, since processes which lter essential characteristics
Processing of sugarcane
of agricultural produce are not exempt & processing of sugarcane
into jaggery
into jaggery changes essential characteristics of sugarcane.
Milling of paddy into rice 7,50,000 Not exempt, as this process, being carried out after cultivation is
over, is not an intermediate production process for cultivation of
plants & it also changes essential characteristics of paddy.

Fumigation in a warehouse 1,80,000 Not exempt, Services by way of fumigation in a warehouse of
of agricultural produce agricultural produce are taxable.
Value of taxable supplies 21,30,000

Authors Note:
Services of Fumigation in a warehouse of agricultural produce was exempt earlier, but now the exemption
has withdrawn

CCP 08.05.08.00
'Seed Farmers Association' is engaged in providing services relating to agriculture. It furnishes the
following details with respect to activities undertaken by them in month of May, 20XX.
S.No. Particulars ₹

1 Cultivation of ornamental flowers 42,000
2 Packing of tomato ketchup 54,000
3 Warehousing of potato chips and Biscuit 1,65,000
4 Sale of tea & rice on commission basis (tea 18000 & rice 50000) 68,000

5 Packaging of pulses in retail packs 45,000
6 Training of farmers on use of scientific tools, Agro-machinery and use of new 10,000
pesticides and fertilizers developed through Scientific research
7 Leasing of vacant land to a study farm (rearing of horses) 1,63,000

8 Grading of wheat according to its quality 42,000
9 Testing of samples from plants for pest detection 1,21,000
10 Rearing of silk worms 83,500
11 Supply of farm labour 58,000

12 Renting of Agro-machinery 5,00,000
13 Processing of Tomato ketchup and Potato Chips 3,00,000
14 Warehousing of minor forest produce 1,70,000
15 Warehousing of seasonal vegetables, fruits, cereals and pulses 50,000

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