In re Gupta Feed Products Private Limited (GST AAR West Bengal)
The ruling by the West Bengal Authority for Advance Ruling (AAR) in the matter of Gupta Feed Products Private Limited addresses the taxability of Cotton Seed De-oiled Cake (HSN 23061020), a product the applicant trades for use as animal/aquatic feed. The applicant sought clarification due to inconsistencies in practice, with some suppliers charging 5% GST and others treating the product as exempt.
The Core Issue and Applicant’s Submission
The Product: Cotton Seed De-oiled Cake (HSN 23061020), also known as “KHOL” or “Cotton Seed Meal,” is a protein-rich residue resulting from the extraction of oil from cottonseeds. It is widely used as feed for livestock, poultry, and fish.
The Questions: The applicant posed three questions to the AAR:
- Is cotton seed de-oiled cake (HSN 23061020) subject to 5% GST when used as animal feed (specifically, fish meal)?
- If GST is applicable, is the applicant entitled to claim Input Tax Credit (ITC)?
- Should the applicant charge 5% GST on the subsequent sale, or is the sale exempt?
Applicant’s Contention: The applicant contended that the product should be exempt from GST based on Entry No. 102 of Notification No. 2/2017-Central Tax (Rate). This entry, which exempts “Aquatic feed including… poultry feed & cattle feed, including… de-oiled cake,” suggests that the end-use as animal feed is the key determinant for exemption.
