As per our sources, a revised GST exemption for storage and warehousing of farm goods takes effect today, 1 November 2026. The Ministry of Finance notified Notification No. 07/2026 Central Tax (Rate) on 27 October, which rewrites entry 24B to cover storage of cereals, pulses, fruits, vegetables and seeds meant for sowing. The same notification adds a wide definition of seed that includes seedlings, tubers, cuttings, grafts and tissue culture plantlets. It also states that the exemption for goods transport agency (GTA) services under entry 21A no longer applies to goods supplied through an e-commerce operator.
This is significant as seed used to fall outside the entry because it is graded, treated and packed before it reaches farmers, according to officials quoted by Business Standard after the GST Council meeting on 8 October. Officials said the exemption now rests on what the goods are, not on how far they have been processed. JurisHour notes that transporters and businesses moving goods sold through e-commerce operators will need to review how those trips are taxed.
We believe that seed companies and the warehouses holding their stock gain most, as storage cost should stop adding to the price farmers pay for seed. Road transporters handling e-commerce consignments lose an exemption, so platforms could face higher freight bills. Coverage misses that the new entry names only five groups of goods, so operators storing other farm produce should check whether their stock fits the wording. We predict, with medium confidence, that the Central Board of Indirect Taxes and Customs (CBIC) or a state tax authority will issue a clarification on the scope of entry 24B by 31 March 2027.
This holds significance for our readers because agricultural storage invoices may change from today. If you run an agri warehouse, review this week which stored goods fall within the five named groups and update your invoicing. If you move e-commerce goods by road, ask your tax adviser how the entry 21A change affects your consignments.
Sources: TaxGuru, 27 October 2026, Notification text and summary; JurisHour, 29 October 2026, GST exemption changes from 1 November; Business Standard, 8 October 2026, GST Council suggests exemption on seed storage
Image credit: Tiger Lily via Pexels
Image used just for representational purposes. It may, or may not, have any relevance to the story.
