The Karnataka Authority of Advance Ruling (AAR) ruled that 18% GST on EPC contract for construction of poultry farm with all equipment.
The applicant, Golden Hatcheries is engaged in Poultry farming and involved in breeding of Parent birds (Mother Birds) which lay fertile eggs and these eggs are subjected to hatching process through hatching machine and the said offspring is called Commercial Broiler chick.
The New born Commercial Broiler chick has been subjected to a rearing process up to 40 days to make it fit for human consumption and afterwards the same has to be sold for meat at chicken shops/ traders and Hotels or restaurants.
The applicant states that Live Poultry vide HSN 0105 is exempted from payment of taxes and also desirous to know the rate of tax and classification of various items, equipment and works contract services required for construction of the poultry farm on immovable property.
The applicant has sought the advance ruling on the issue in respect of the rate of tax on various items and equipment which are used in the construction of Poultry Farm on immovable property and HSN code on transfers of poultry farm equipment and others involved execution of works on immovable property.
The coram of M.P.Ravi Prasad and T.Kiran Reddy ruled that the rate of tax on the EPC contract of the construction of poultry farm on immovable property with all the equipments is as per serial number 3 of item number (ii) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 at the rate of 9 % CGST and 9% KGST.
“The Transfer of poultry farm equipment and others involved execution of composite supply of works contract on immovable property for the construction of poultry farm house is classified under HSN 9954,” the AAR observed.
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