Anand Nursery engaged in agricultural related services provides the following details of the transactions for the month of December, 2018: S. No. Particulars Amount (in lakhs) (1) Renting of Agro-machinery 5 (2) Cultivat

Computation of Taxable Services of Anand Nursery S. No. Particulars Amount (in lacs) 1 Renting of Agro-machinery [Note - 1] - 2 Cultivation of Ornamental flowers [Note - 2] - 3 Processing of Tomato ketchup [Note - 3] 3 4 Processing of Potato chips [Note - 3] 1.5 Value of Taxable Service 4.5 Notes: The above case falls within the purview of Exemption Notification 12/2017 - Central Tax (Rate) Sl. No. 54 under heading 9986. Renting of Agro-machinery is exempt as per the aforesaid notification. Hence, the same is not liable to GST. Cultivation of plants falls within the purview of agriculture which is exempt. Hence, the same is not liable to GST. Potato chips and tomato ketchup are not agricultural produce and thus do not fall under exemption. However, conversion of potato and tomato into potato chips and tomato ketchup respectively amounts to manufacture since after such processing new products with different name, character and use emerge. Therefore, such processing will not fall under exemption and hence, it is liable to GST.