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2019 (3) TMI 922 - AAR - GSTClassification of service - Services related to rearing of all life forms of Animals by way of testing include testing of Animal Feeds, Feed ingredients and Feed supplements used to make feeds - Benefit of exemption - Applicability of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 - Held that - The Applicant is involved in the service of testing the feed/ feed ingredients for different parameters for the farming community of the country. They undertake testing of the raw materials, finished animal feeds and feed supplements for its nutrient profile, contaminants, adulterants, mycotoxins and other contents. The activities undertaken by the Applicant are testing the chemical/ physiological composition of the samples of animal feed. Applying the statutory provisions to the facts of the case, it is evident that Service classification Chapter Heading 9986 covers only that genre of support services of animal husbandry like Sheep shearing, care and management of herds, pet training, grooming, etc which are support services related to the operation of animal husbandry and does not cover the services provided by the applicants, which is a mere testing service - the services of the Applicant are not covered under the purview of SAC 9986. The services are more appropriately classified under 998346 Technical testing and Analysis services. The testing of animal feed services rendered by the Applicant is not eligible for the exemption under Notification 12/2017 Central Tax (Rate) dated 28/06/2017 as amended for CGST and vide G.O. (Ms) No. 73 dated 29.06.2017 for SGST.
Issues:
- Applicability of Notification No. 12/2017-Central Tax (Rate) to services related to rearing of animals by way of testing - Classification of services provided by the Applicant under the GST regime Analysis: Issue 1: Applicability of Notification No. 12/2017-Central Tax (Rate) to services related to rearing of animals by way of testing The Applicant sought an Advance Ruling to clarify if their services related to rearing animals through testing of animal feeds, feed ingredients, and supplements fall under the exemption provided by Sl.No. 54 of Notification 12/2017-Central Tax (Rate). The Applicant highlighted that testing of feeds is crucial for proper rearing of animals to ensure nutritional value, detect contaminants, adulterants, mycotoxins, and overall quality. They argued that their services were exempted under the pre-GST regime and should continue to be exempt under GST. The Authority examined the nature of services provided by the Applicant, which involved testing various parameters of animal feed samples. The Applicant charged for tests such as Crude Protein, Crude Fibre, Moisture, Multi Mycotoxins, among others. The Authority noted that the Applicant's activities primarily focused on testing the chemical and physiological composition of animal feed samples. The Applicant's services were found to be more aligned with technical testing and analysis services (SAC 998346) rather than support services to animal husbandry (SAC 998612) as per the classification under GST. Issue 2: Classification of services provided by the Applicant under the GST regime The Authority determined that the services of the Applicant, involving testing of animal feed, did not fall under the purview of the exemption provided by Notification 12/2017-Central Tax (Rate) dated 28/06/2017. The services were deemed ineligible for exemption under both CGST and SGST Acts. The ruling clarified that the Applicant's services related to testing of animal feed and feed ingredients were not covered under the mentioned notification. In conclusion, the Authority ruled that the services provided by the Applicant concerning the testing of Animal Feed and Feed ingredients were not eligible for exemption under Notification 12/2017-Central Tax (Rate) dated 28/06/2017 for both CGST and SGST Acts.
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