The Telangana Authority of Advance Ruling (AAR) ruled that the supply of Poultry Meal and Poultry Fat attracts 5% and 12% GST respectively.
The applicant, M/s Sushi Pet Nutriscience, is a partnership firm which is engaged in manufacturing or rendering of ‘Poultry Meal’ and ‘Poultry Fat’. Both these products are used as one of the protein raw materials for the manufacturing of animal feed industries, aqua feed industries.
The major raw material for manufacturing poultry meal and poultry fat is chicken wastes such as chicken legs, chicken head, intestine, feathers, skin, etc. which they buy from the chicken stall owners in twin cities and other parts of Telangana State. After processing waste materials such as chicken heads, legs, intestines, etc. lost essential characteristics of original material and a new product emerged in powder form.
The applicant sought for ruling with regard to the HSN codes and the rate of tax in respect of “poultry meal” and “poultry fat” supplied by their unit.
The Authority consists of the Additional Commissioner of State Tax, J. Laxminarayana and the Joint Commissioner of Central Tax, B. Raghukiran ruled that the product “poultry meal” is classifiable under Chapter Sub-Heading No. 2301 10 90 of the first schedule to the Customs Tariff Act, 1975 and the supply of the same attracts GST rate of 5% (2.5 % CGST and 2.5% SGST) under Sl. No. 103 of the Schedule-1 of the Notification No. 01/2017-CT (R), dated June 28, 2017.
The Authority further ruled that the product “poultry fat” is classifiable under Chapter Sub-Heading No. 1501 90 00 of the first schedule to the Customs Tariff Act, 1975 and the supply of the same attracts 12% GST (6% CGST and 6% SGST/UTGST) vide entry No. 19 of the Schedule-II of Notification No. 01/2017-CT(R) dated July 28, 2017.
Subscribe Taxscan Premium to view the Judgment
