Pulse grains & cereals are agricultural produce if no further processing is done; no GST chargeable: AAR
[2018] 94 taxmann.com 159 (AAR-GUJARAT)
GST: Pulses (de-husked or split), jaggery, processed dry fruits such as processed cashew nuts, raisin, apricot, fig, date, tamarind, shelled groundnuts / groundnut seeds and copra are not agriculture produce as defined under notification no 11/2017-Central Tax (Rate) dated 28.6.2017; Cereal on which any processing is done as is not usually done by a cultivator or producer, will fall outside definition of agriculture produce
GST: Processed spices including processed turmeric and processed ginger are not agriculture produce as defined under notification no 11/2017-Central Tax (Rate) dated 28.6.2017
GST: Whole pulse grains such as whole gram, rajmaetc and cereals, groundnuts with shell, turmeric and ginger on which no further processing is done or such processing is done as is usually done by cultivator or producer which does not alter its essential characteristics but it makes it marketable for primary market, falls under definition of agriculture produce as defined under notification no 11/2017-Central Tax (Rate) dated 28.6.2017
• Applicant has referred to notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, which inter-alia provides rate of tax as NIL for ‘support services to agriculture, forestry, fishing, animal husbandry’, and submitted that in their opinion, ‘Agricultural Produce’ includes all cereals, pulses, fruits, nuts and vegetables, spices, copra, sugar cane, jaggery, raw vegetables fibers such as cotton, flax, jute, indigo, unmanufactured tobacco, betel leaves, tendu leaves, rice, coffee and tea but does not include manufactured products such as sugar, edible oils, processed food and processed tobacco, and intra-state support services to agricultural produce by way of loading, unloading, packing, storage or warehousing of agriculture produce is chargeable at NIL rate.
• Pulses (de-husked or split), jaggery, processed dry fruits such as processed cashew nuts, raisin, apricot, fig, date, tamarind, shelled groundnuts / groundnut seeds, and copra are not agriculture produce as defined under Notification No. 11/2017-Central Tax (Rate). ‘Cereal’ on which any processing is done as is not usually done by a cultivator or producer will fall outside the definition of agriculture produce.
• Processed spices including processed turmeric and processed ginger, are not agriculture produce as defined under Notification No. 11/2017-Central Tax (Rate). However, groundnuts with shell, turmeric and ginger on which no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but make it marketable for primary market would fall within the definition of agriculture produce.
• Whole pulse grains such as whole gram, rajma etc. and ‘cereal ‘ on which no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market, fall under the definition of agriculture produce as defined under Notification No. 11/2017-Central Tax (Rate).
[2018] 94 taxmann.com 159 (AAR-GUJARAT)
AUTHORITY FOR ADVANCE RULINGS, GUJARAT
Guru Cold Storage (P.) Ltd.
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