In re Adani Wilmar Limited (GST AAR Madhya Pradesh)
Soya husk resulting from the extraction of Soyabean oil, being principal input/ ingredient for manufacture or processing of Cattle feed and Poultry feed which may become value added product in the market. Soya husk being principal input/ ingredient to Poultry feed and Cattle feed industry, which is taxable @ 5% under Subheading 2304 as per Entry 105 of Notification No. 1/17-Central Tax (Rate) dated, 28.06.2017
We are of the opinion that Soya husk will be covered by specific entry 105 of Schedule I attracting GST @5% (2.5% CGST & 2.5% SGST) under Chapter 2304.
FULL TEXT OF THE RULING OF AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH
1. The present application has been filed u/s 97 of the Central Goods and Services Tax Act, 2017 (hereinafter also referred to CGST Act and SGST Act respectively) by M/s ADANI WILMAR LIMITED (hereinafter referred to as the Applicant), registered under the Goods & Services Tax.
2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act or MP GST Act would be mentioned as being under the GST Act.
3. BRIEF FACTS OF THE CASE
3.1 M/s Adani Wilmar Limited (the applicant), is a person registered under the provisions of CGST Act (the Act) and MP GST Act read with section 20(v) of IGST Act, vide GSTIN: 23AABCA8056G1ZX, having principal place of business, at Vidisha.
3.2 The applicant is engaged in the business of manufacturing and sale of Soya Oil, wherein Soya DOC, Soya husk etc are obtained through the process of solvent extraction of soya seed at the factory located at Vidisha. Soya oil is principal product of process of solvent extraction of Soya seed. During the process of manufacture, many by-products and waste products are also obtained.
3.3 Soya husk resulting from extraction of soyabean oil is sold to the customers by the applicant company. The Soya husk so supplied by the applicant is used by the customers as input / ingredients to Cattle feed.
3.4 There are two different perceptions with regard to taxability of Soya husk are prevalent in the market and in trade circles as under:-
(i) Soya husk resulting from the extraction of Soyabean Oil is NIL rated, which is exempt from payment of GST as Poultry feed and Cattle feed under HSN heading 2302, under Entry 102 of Notification No.2/17-Central Tax (Rate) dated, 28.06.2017, exempting the goods included therein from payment of GST.
(ii) Soya husk resulting from the extraction of Soyabean oil, being principal input/ ingredient for manufacture or processing of Cattle feed and Poultry feed which may become value added product in the market. Soya husk being principal input/ ingredient to Poultry feed and Cattle feed industry, which is taxable @5% under Sub-heading 2304 as per Entry 105 of Notification No. 1/17-Central Tax (Rate) dated, 28.06.2017
4. QUESTIONS RAISED BEFORE THE AUTHORITY:
1) Whether Soya husk resulting from the extraction of Soyabean Oil, being an input / ingredient to Cattle feed is exempt from payment of GST, under HSN heading 2302, under Entry 102 of Notification No.2/17-Central Tax (Rate) dated, 28.06.2017, exempting the goods included therein from payment of GST.
2) If the answer to question 1 is no, then the determination/ classification of correct tariff and rate of tax thereon under which soya husk resulting from extraction of Soyabean oil, being an input / ingredient to Cattle feed, will fall?
5. RECORD OF PERSONAL HEARING
5.1 Shri S, Krishnan, Chartered Accountant – Authorized Representative of the applicant appeared for personal hearing on behalf of the applicant and reiterated the submissions made in the application.
The applicant states that –
5.2 SI.No.102 of Notification No.2/17-Central Tax (Rate) dated, 28.06.2017 exempting the goods from the whole of GST reads as under: –
