Storing of Fresh Eggs – Whether Agriculture Produce?

Shubhlaxmi Cold Storage & Ice Factory (P.) Ltd. – AAR Rajasthan – Order No. RAJ/AAR/2018-19/18 – Dated 15-09-18

Facts of the case : 

Applicant was having a cold storage for storing of agriculture produce out of cultivation of plants and poultry eggs which are produce of rearing of life animals/poultry farming, Applicant is registered under GST Rules and is paying tax on storage charges of the processed agriculture produce and other products. According to Applicant eggs are produce of live chicken farming and are not further processed. Hence their storage in cold storage is covered by S. No. 24 of Notification No. 12/2017-CT (Rate) and has argued that service of storing fresh eggs should not be chargeable under GST.

 AAR Ruled as under : 

Agriculture produce is defined under clause (d) of para 2 of Notification No. 12/2017 and accordingly eggs are produced out of rearing of chicken (Poultry Farming) for food and as per definition of Agricultural Produce, any produce out of rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either 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. Thus Fresh Eggs in shell on which no further processing is done are covered under definition of “agricultural produce.” Hence, charges received by appellant would be exempted from payment of GST under N. no. 12/2017.