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ADVANCE RULING FOR SUPPLY OF FARM LABOUR COVERED UNDER HEADING 9986 AND 99851 ------------- AAR held if classified under heading 9985 taxable, if classified under 9986 exempt
February 17, 2020
Supply of Farm Labour
Exempt or Taxable
Mrs Manju Devi, In re (2020) AAR-Rajasthan
The applicant has sought a advance ruling to determine whether GST exemption on supply of farm labour services is available to the supplier of manpower falling under SAC 99851
| SAC Code | Description | GST Rate |
| SAC 9985 | Employment services including personal search/referral service & labour Supply Service | 18% |
| SAC 998611 | Support Services to agriculture, hunting, forestry and fishing | 0% |
| SAC 9986 (998612,998613,998614,998615, | Support Services to agriculture, hunting, forestry and fishing | 18% |
Following Services are exempt from GST as per Notification No 12/2017 Central Tax Rate (Point No 54)
Service relating to 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 or agricultural produce by way of—
(a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing;
(b) supply of farm labour;
(c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
(d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; (e) loading, unloading, packing, storage or warehousing of agricultural produce; (f) agricultural extension services; (g) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural Produce. |
Decision:-
9985 is for support services other than agriculture and includes manpower supply for various works.
9986 covers the services relating to cultivation of plants and rearing of all life form of animals.
Therefore exemption from GST on supply of farm labour services is available when such services are classified under heading 9986 only.
Hence supplier of manpower services under SAC 99851 is not exempted from GST.
RG Comments
Hence when a invoice is raised and filed in GSTR-1 pertaning to farm labour
Supplier as well as receiver should check the SAC Code to safeguard GST Liability.
9985 Taxable
9986 Exempt
