Central government exempts Isobgul and Psyllium Seeds from Goods and Services Tax effective 1 November 2026

The central government has officially exempted Isobgul, commonly known as Psyllium Seeds, from the Goods and Services Tax effective from 1 November 2026. This policy revision eliminates previous tax liabilities associated with the supply and trade of this agricultural commodity. The exemption aims to ease compliance hurdles and lower costs for farmers, processors, and consumers who rely on the product for medicinal and dietary purposes. Tax exemptions on agricultural produce are introduced to support rural economies and ensure essential commodities remain affordable.

Under the Goods and Services Tax framework, moving an item from a taxable bracket to an exempt category alters the input tax credit eligibility for registered dealers. Businesses dealing in these seeds can no longer collect tax on outward supplies, and they must reverse proportionate input tax credits on inputs used exclusively for exempt supplies. Tax practitioners and corporate accountants must advise their clients in the agricultural trade to reconfigure their enterprise resource planning systems prior to 1 November 2026.

Invoices generated on or after the effective date must accurately reflect the nil-rated GST status for Isobgul. Businesses should also review their input tax credit computations to ensure full compliance with statutory provisions.