News - New rules will have impact on retail chains, restaurants and contractual farming

As the government recently brought some parts of agriculture under GST gamut, some big retail chains and quick service restaurants may see the impact. This is mainly because contractual farming will now be under the purview of GST. 

Many big retail chains give contracts to farmers for growing certain agricultural products which are then directly sold in the malls. Industry trackers say that such contractual farming would now attract GST.

Also some of the multinational quick service restaurants including some renowned burger chains give contracts for potato farming. That too would now attract GST. 

Additionally some of the middle men that trade in agricultural commodities would also be included under GST.

As for traditional farmers, they would not be required to get themselves registered to pay GST. However, those buying products from the farmers may be required pay GST.