GST Council suggests tax exemption on storage of seeds meant for sowing | Finance News
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The exemption has been proposed through an amendment to Entry 24B of Notification No. 12/2017, sources said
The Goods and Services Tax (GST) Council has recommended exemption of tax on storage and warehousing services for agricultural seeds meant for sowing.
In its meeting on Thursday, the Council also suggested exemption for agricultural support services of curing coffee provided by curers to cultivators.
Sources stated that the exemption for storage and warehousing is available for agricultural produce that has undergone only such processing as a cultivator or producer would ordinarily carry out.
The exemption has been proposed to be carried out by amending Entry 24B of notification number 12/2017, sources said
“Seed for sowing is graded, treated, and packed before it reaches the farmer, and on that reasoning it fell outside the entry. The exemption now rests on what the goods are rather than how far they have been processed, and the cost of holding seed will no longer enter the price at which seed reaches the cultivator. The meaning of seed is drawn from the seeds law,” officials said.
On the second exemption recommended by the Council on support services of curing coffee provided by the coffee curers to cultivators, officials said it has been granted exemption because it is an activity found to be falling outside the general exemption for services relating to cultivation, because it is carried out at a separate unit.
First Published: Oct 08 2026 | 9:01 PM IST
