Meaning of agriculture as per Service Tax :-
As per Section 65 B (3) of Chapter V of the Finance Act, 1994 ( inserted (w.e.f. 1.7.2012) by s.143 of the Finance Act.. 2012 ( 23 of 2012) ) :-
“agriculture” means the 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;
Meaning of agriculture as per GST :-
Section 2 (4) “agriculture” with all its grammatical variations and cognate expressions, includes floriculture, horticulture, the raising of crops, grass or garden produce and also grazing, but does not include dairy farming, poultry farming, stock breeding, the mere cutting of wood or grass, gathering of fruit, raising of man-made forest or rearing of seedlings or plants:
Explanation – For the purpose of this clause, the expression ‘forest’ means the forest to which the Indian Forest Act, 1927 applies.
Effect of this Change
As per Section 2 (13 ) of GST, Business does not include agriculture.
Therefore now the following will be treated as business under GST :-
dairy farming, poultry farming, stock breeding, the mere cutting of wood or grass, gathering of fruit, raising of man-made forest or rearing of seedlings or plants
As per Section 9 of GST Every person carrying on business is taxable person if he carries on business at any place in India/State of ____ and who is registered or required to be registered under Schedule III of this Act for payment of tax.