Intro Paragraph:
The Bangalore Rose Onion GST exemption just got simpler. As per CBIC Notification No. 05/2025-Central Tax (Rate) dated 10.05.2025, the prior condition of Agricultural Produce Market Committee (APMC) certification has been removed. This update provides direct relief to farmers and traders by easing compliance for availing GST exemption on this iconic produce.
What Has Changed?
Earlier, exemption on Bangalore Rose Onion under GST was conditional upon proof of sale through APMCs, as clarified in CBIC Circular No. 177/09/2022-GST. This has now been removed.
✅ Old Condition (Before 10.05.2025)
- Exemption only if sold through APMC-certified markets
- Farmers/traders needed to furnish supporting documentation
❌ Issues Faced
- Limited access to APMC yards
- Documentation burdens on small traders
- Confusion in applicability during GST audits
🆕 New Rule (From 10.05.2025)
- No APMC requirement
- Sale of Bangalore Rose Onion is fully exempt from GST under Entry No. 24 of Notification 2/2017-CT(Rate)
- Applies to all types of supplies—whether through APMC or directly to consumers
📜 Legal Basis: CBIC Notification No. 05/2025-Central Tax (Rate) dated 10th May 2025
Why This Matters
Key Benefits:
- ✅ Reduces compliance burden
- ✅ Supports direct farm-to-market trade
- ✅ Empowers small farmers and vendors
- ✅ Aligns with ‘Ease of Doing Business’
This change is also seen as a response to long-standing feedback from Karnataka’s onion growers and traders, especially in Bangalore Rural and Chikkaballapur districts.
Expert Insight
“Removing the APMC clause finally recognizes the informal rural markets. It’s a big win for onion farmers,”
– CA Rajiv Krishnamurthy, GST Expert
He also advises traders to maintain basic sales records even after the removal of this condition, to ensure smooth verification during departmental checks.
Summary Table: GST on Bangalore Rose Onion
| Particulars | Earlier (Before 10.05.2025) | Now (From 10.05.2025) |
|---|---|---|
| GST Rate | Exempt | Exempt |
| Condition of APMC Sale | Mandatory | Not Required |
| Supporting Documents Needed | Yes | No |
| Impact on Farmers & Vendors | Restricted access | Free & direct sale |
| Notification Reference | 2/2017 + Circular 177 | Notification 05/2025 |
FAQs on Bangalore Rose Onion GST Exemption
Q1. Do I need to sell through an APMC to get GST exemption now?
No. From 10th May 2025, this condition has been removed.
Q2. Can retailers directly purchase without GST?
Yes, retailers can buy exempted onions directly from farmers or aggregators.
Q3. Is this applicable to all onions?
No. This update specifically refers to Bangalore Rose Onion, which is a notified agricultural produce.
Q4. Where can I find the official notification?
You can access it here on CBIC’s official portal
Final Thoughts & CTA
The GST exemption on Bangalore Rose Onion is now more accessible and farmer-friendly. By removing procedural barriers, CBIC has simplified agri-trade compliance.
➡️ Need help tracking agri-GST exemptions or filing returns as a farmer/trader? Talk to Efiletax’s GST team now.
Summary
CBIC has removed the APMC sale condition for GST exemption on Bangalore Rose Onion via Notification 05/2025. Farmers and traders can now sell directly without GST liability or documentation, easing compliance and promoting rural trade. Exemption still applies under Entry 24 of Notification 2/2017-CT(Rate).