Is Nursery Exempt from GST?

In India, a comprehensive tax known as the products and Services Tax (GST) is imposed on the delivery of products and services. Several taxes and levies that the Central and State governments had previously imposed have been replaced by it. However, a lot of individuals aren’t sure if nurseries are GST-exempt or not. Yes, nursery is exempt from GST, to address your question.

Nursery is free from GST because it is categorized as an agricultural operation under the GST Act. This means that you won’t be charged GST if you buy plants or other gardening supplies from a nursery. The GST will, however, be charged on non-agricultural items that the nursery sells, such as pots, garden supplies, or fertilizers.

Let’s now discuss the issue of why plants are pricey. The high cost of plants is caused by a number of variables. The cost of production is one of the primary causes. To grow plants, nurseries need to spend a lot of money on people, equipment, and land. They also have to pay for keeping things like temperature, humidity, and light where they need to be for the plants to flourish. The demand for plants also contributes to their high cost. Because some plants are more in demand than others, their costs are higher. Additionally, the price of shipping and storing plants raises their overall cost.

The markup on nursery plants is determined by the type of plant and the location after taking this into account. Plants are typically marked up between 30% and 50%. Some exotic or uncommon plants, however, could carry a greater markup.

The crop that is most in demand also fluctuates based on the region and the time of year. Vegetables, fruit trees, and herbs in general are always in high demand. Flowering plants and ornamental plants like bonsai trees, on the other hand, are very popular during holiday seasons.

In conclusion, because it is regarded as an agricultural activity, nurseries are exempt from GST. Several variables, including production costs, demand, and transportation, contribute to the high price of plants. Depending on the type of plant and the region, there are different markups on nursery plants. The crop that is most in demand changes according to place and season as well.