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2018 (6) TMI 622 - AAR - GST


Issues:
1. Interpretation of the definition of 'Agricultural Produce' under Notification No. 11/2017-Central Tax (Rate).
2. Taxability of various agricultural products and processed goods for services related to loading, unloading, packing, storage, or warehousing.

Issue 1: Interpretation of 'Agricultural Produce' Definition:
The applicant sought clarification on whether specific products fall under the definition of 'Agricultural Produce' as per Notification No. 11/2017-Central Tax (Rate). The applicant argued that goods like cereals, pulses, spices, copra, jaggery, and various fruits are covered under the definition. However, the GST Commissionerate contended that products requiring further processing beyond cultivation do not qualify as 'Agricultural Produce' under the said notification.

Issue 2: Taxability of Agricultural Products and Processed Goods:
The Authority analyzed the definition of 'Agricultural Produce' under the notification and provided a detailed ruling on the taxability of various products. It was determined that de-husked pulses, jaggery, processed dry fruits, processed spices, and certain other goods do not fall within the definition of 'Agricultural Produce' due to processing altering their essential characteristics. On the other hand, whole pulse grains, certain cereals, and specific products with minimal processing that maintain their essential characteristics for the primary market were considered as 'Agricultural Produce' eligible for NIL tax rate on related services.

Summary of Ruling:
The Authority ruled that de-husked pulses, jaggery, processed dry fruits, and certain processed spices do not qualify as 'Agricultural Produce' under the notification. However, whole pulse grains, specific cereals, and certain products with minimal processing maintaining essential characteristics for the primary market are considered 'Agricultural Produce' eligible for NIL tax rate on related services. The ruling clarified the taxability of various agricultural products and processed goods based on the interpretation of the notification's definition of 'Agricultural Produce.'

 

 

 

 

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