In re Ganga Kaveri Seeds Pvt. ltd. (GST AAR Telangana)
1. Storage of seeds in the storage facility/godown, loading/unloading and packaging by job worker are not exempt under:
a. Serial No. 54E of Notification No. 12/2017 as this entry pertains to Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce. This entry relates to exemption of services engaged by a cultivator or an agriculturalist and not to services engaged by Seed Company.
b. Serial No. 24(i)(e) of Notification No. 11/2017- Central Tax (Ret)dated 28-06-2017 as this entry pertains to support services to agriculture, forestry, fishing, animal husbandry engaged by a cultivator and not to services engaged by a seed company.
2. Cleaning, drying, grading and treatment with chemicals carried out by a job worker or on job work basis are not exempt under:
a. Serial No. 54(c)(h) of Notification No. 12/2017 as this entry pertains to Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce. This entry relates to exemption of services engaged by a cultivator or an agriculturalist and not to services engaged by Seed Company.
b. Serial No. 24(i)(c) & (h) of Notification No. 11/2017- Central Tax (Ret)dated 28-06-2017 as this entry pertains to support services to agriculture, forestry, fishing, animal husbandry engaged by a cultivator and not to services engaged by a seed company.
3. Transportation of seeds from farm to storage facility and then transportation of packed seed from storage facility to distributors is not exempt under:
a. Serial No. 21(a) of Notification No. 12/2017, as this entry provides exemption on transportation services to agricultural produce and from the foregoing discussion it is established that seed is not agricultural produce in terms of the definition used in the notification, the transportation services engaged by a seed company are not exempt.
4. If processing is undertaken by an applicant himself for in house seed production, there is no supply and hence exempt.
Read AAAR Order: GST exemption not applicable to production & sale of agricultural seeds: AAAR
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