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TMI Blog2019 (3) TMI 1954X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that once the seed is rejected it no longer remains a seed, is also not acceptable. For these reasons, 'rejected wheat or paddy seeds' cannot be covered by Entry Serial 63 covering Chapter 12 of the GST Tariff. The seeds of both wheat and paddy, rejected or otherwise, are also appropriately classifiable under Chapter 10 of the tariff ibid. In fact there are specific entries in the tariff. Chapter sub heading 1001 11 00 covers seeds of Durum wheat while 1001 91 00 covers seeds of other varieties of wheat. Similarly, Chapter sub heading 1006 10 10 covers paddy (rice) of seed quality. However, we find that 'NIL' rate of GST is applicable on these goods. If the rejected seeds are put up in a unit container and bearing a re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference is being decided ex-party. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UKGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the UKGST Act. BRIEF FACTS OF THE CASE In the instant case the Party M/s Sam Overseas, vide their application under sub-section (1) of Section 97 of the CGST/SGST Act, 2017 sought an Advance Ruling on classification and applicability of GST rate on the 'Rejected Wheat Seed' and Rejected Paddy Seed'. Therefore, in terms of said Section 97(2)(a) (e) of CGST/SGST Act, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1010, Rice in the Husk (paddy or rough) of 'seed quality' has been given, however, it is nowhere mentioned in said HS code whether it covers either the rejected or the non rejected Wheat Seed and Paddy Seed. Hence, in general, the HS Code 1001 and 1006 under the Customs Tariff covers all the 'Wheat Seed' and Paddy Seed' irrespective of the fact that whether it is rejected or non-rejected. In view of the above, I observe that the Rejected Wheat Seed and Rejected Paddy Seed is classified under HS Code 1001 and 1006 of the Customs and, as per Chapter Note of GST Tariff, the tax is leviable at the 'Nil' rate on the supply of the Rejected Wheat Seed and Rejected Paddy Seed in question. RULING :- In light of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and a lot of research goes to produce a particular grain type which is of seed quality. Some of the basic characteristics of a wheat or paddy seed are that- Seed purity It should have genetic purity.--, It should have physical purity (no mix of other crop seed, weed seed, inert matter). It should have high germination vigour, germination rate and sprouting capacity. It should be free from seed born disease and pests. It should be good seed shape, size and weight for producing good seedlings. It should be healthy and shining without any spot and weakness on looking. It should be in equal size and weight, which should have uniformity on germination after sowing. It should have standard mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If the rejected seeds are put up in a unit container and bearing a registered brand name or bearing a brand name on which an actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, then the effective CGST SGST rate on both will be 2.5% 2.5%. RULING In view of the foregoing discussions and findings, we give the ruling as follows- 1. Rejected wheat seeds are classified under Chapter sub heading 1001 11 00 (Durum) and 1001 91 00 (Others) of the GST Tariff 2017. 2. Rejected paddy seeds are classified under 1006 10 10 of the GST Tariff 2017. 3. The applicable CGST SGST rate on both the above goods is NIL . However if the rejected seeds are put up in a unit containers and bearin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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