The government of India brought some agriculture portion under GST regime like contractual farming from which big retail chains & Quick service restaurants (QSRs) may see their impact as they provide contracts to a farmer for growing specific agricultural products which directly sold by them in malls would now attract GST.
Earlier it was a direct pay system by the corporate houses for the taxes which they acquired from farmers in return of specific organic produce but now as the new GST scheme the taxation part will now slide transfer to both of the parties to ascertain the actual transaction value and cut out the incurred tax.
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Middlemen/ small retailers who deal in specific agriculture products will also now come under GST purview. For Traditional farmers, they would not be required to be registered themselves to pay GST but for that specific buying product, they required to pay GST.
The government is also looking to clarify the issues before the centralized tax rolled out in the next couple of months. Some sectors have a concern regarding GST as how it impact them like Bank and Financial Institution may have issues regarding the complexity in paying taxes as they increase under the upcoming GST. Hence they have also approached the government to amend the rules regarding the same.
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