In re Ms. Animal Feed Analytical and Quality Assurance Laboratory (GST AAR Tamilnadu)
Whether services related to rearing of all life forms of animals by way of testing include testing of Animal Feeds, Feed ingredients and Feed supplements used to make feeds are covered under Notification No. 12/2017 Central Tax (Rate)?
The services provided by the Applicant related to testing of Animal Feed /Feed ingredients are not be covered under Notification 12/2017 Central Tax (Rate) dated 28/06/2017 as amended for CGST and No.II(2)/CTR/532(d-15)/2017 vide G.O. (Ms) No. 73 dated 29.06.2017 for SGST.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING TAMIL NADU
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
M/s. Animal Feed Analytical and Quality Assurance Laboratory (hereinafter called the Applicant), Registered address at 1, Veterinary College and Research Institute , Mohanur Road, Ladduvadai Post, Namakkal-637002. They have preferred an Application seeking Advance Ruling to clarify applicability of Notification No.12/2017 Central Tax (Rate) dated 28.06.2017 to
“Services related to rearing of all life forms of Animals by way of testing include testing of Animal Feeds, Feed ingredients and Feed supplements used to make feeds”
2.1 The Animal Feed Analytical and Quality Assurance Laboratory, Veterinary College and Research Institute ( VC & RI) , Namakkal is a constituent Department of VC & RI under the aegis of Government of Tamil Nadu established by the Tamil Nadu Veterinary and Animal Sciences University (TANUVAS). The Applicant is involved in the Services of testing the Feed/ Feed ingredients for different parameters since 1994 for the farming community of the country. Their clients are mostly farmers, feed manufacturers and government organizations under Ministry of Agriculture. The Applicant is involved in testing the raw materials, finished animal feeds and feed supplements for its nutrient profile, contaminants, adulterants, mycotoxins and other contents. The Applicant has informed that testing of feeds, feed ingredients and feed supplements is part of rearing all life forms of animals for food, feed raw materials or other similar products or agricultural produce. They have also stated that testing of feed provides sufficient data on nutritional value which decides its feeding value , adultrant/contaminants present in those materials which reduce value and cause disorders in animal/poultry, mycotoxins which downs animal health and whether or not they are worth inclusion. This is required for proper and healthy rearing of animals and thus to obtain quality products for human beings and animals.
2.2 The Applicant has further stated under the Service Tax regimen their services were exempted under Section 66D of Finance Act 1994, which was modified vide D.O.F.No.334/3/2013-TRU dated 28.02.2013, wherein in the negative entry list entry in Sub-clause(i) of Clause(d) in Section 66D, the word seed was deleted for allowing benefits for all other testings related to agricultural produce or agriculture.
2.3 In the GST regime, the Applicant was charging 18 % GST on all samples submitted for technical analysis. The Applicant stated that SI.No. 54(a) Heading 9986 of Notification 12/2017-Central Tax(Rate) dated 28.06.2017 exempts “services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel or raw material or other similar products or agricultural products by way of agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing” would include testing, testing of animal feeds, feed ingredients and feed supplements used to make feeds. The Applicant requests a ruling on applicability of exemption under this Notification including for inter-state testing services.
3. The Authorised Representative of the Applicant was heard in the matter. They stated in the Pre- GST regime, their services were exempted under Section 66D of Finance Act, 1994 and they are of the view that they are eligible for exemption under GST as per Notification 12/2017CT(R). In light of the above, the Applicant has sought Advance Ruling to ‘clarify, whether their services related to rearing of all life forms of animals by way of testing include testing of animal feeds, feed ingredients and feed supplements used to make feeds will be covered under SI.No.54 of Notification 12/2017 CT(R). They also submitted copy of invoices raised for these services.
4. Documents submitted were examined. It is seen that the Applicant is receiving samples of various goods such as ‘Sunflower deoiled cake’, ‘Layer mash’, ‘Soybean Meal’, ‘Jowar’,’Chick mash’,’Cattle feed, ‘deoiled groundnut cake’, etc. For these samples, the Applicant is charging for tests for ‘Crude Protein’, ‘Crude Fibre’, ‘Sand & Silica (Acid Insoluable Ash)’, ‘Urea’, ‘Multi Mycotoxins’, ‘ether extract’, ‘Alfatoxin’ , ‘Moisture’ etc. The SAC indicated in invoice is 9986. The invoices are being raised on various poultry farms, animal feeds firms, etc.
5.1 Notification 12/2017 Central Tax (Rate) exempts the intra-State supply of services namely:-
