Cotton under chapter heading 5201 and 5203 has been kept in a 5% rate slab. Does this mean that cotton farmers are required to register under GST?

Ans: It is true that Cotton, under certain chapters, has been kept in the 5% slab. However, according to Section 23(1)(b) of the CGST Act, 2017 an agriculturist is not liable to register or pay GST to the extent that the supply of produce is out of cultivation of land. However, under Section 9 (4) of the CGST Act, 2017, buyers of raw cotton (who are registered individuals) from the farmer must pay tax on a reverse charge basis.

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