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5 percent GST is applicable on Poha Bran: AAR [Read Order]

GST - Poha Bran - AAR - Taxscan

The Karnataka Authority of Advance Ruling ( AAR ) ruled that 2.5% Central Goods and Service Tax (CGST) and 2.5% of Karnataka Goods and Service Tax (KGST)  i.e. a total of 5% of GST is applicable on Poha Bran.

The applicant, M/s Basaveshwara Corporation is a private firm and is registered under Goods and Service Tax, 2017. The applicant is engaged in manufacturing and trading of Poha Bran or Bran of beaten rice which is supplied to cattle feed manufacturing units. Poha Bran is a by-product obtained while manufacturing poha and is used as food for consumption, Poha Bran which is in powder form with a fiber content of 35% and oil content of 2% to 3% is invariably used as an ingredient in cattle field manufacturing units.

The applicant has sought advance ruling on the question of rates of tax applicable on the sale of Poha Bran or Bran of Beaten rice which is supplied to cattle feed manufacturing unit.

The authority consisting of members Dr. M.P. Ravi Prasad and Mashood Ur Rehman Farooqui ruled that 2.5% Central Goods and Service Tax (CGST) and 2.5% of Karnataka Goods and Service Tax (KGST) i.e. a total of 5% of GST is applicable on Poha Bran.

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