In re Surendra Bucha (GST AAR Rajasthan)
In re Surendra Bucha (GST AAR Rajasthan) concerned whether the seeds in question qualified as “fresh” and were therefore covered by the NIL-rated Entry 87 of Notification 10/2025-CT(R), or were “dried” and taxable at 5% under Entry 71 of Notification 09/2025-CT(R). The Authority for Advance Ruling, Rajasthan ruled that the seeds were fresh and eligible for exemption from GST under Entry 87 of Notification 10/2025-CT(R). The Authority accepted that no drying or processing had occurred in respect of the seeds. In reaching its conclusion, the Authority also considered the Gujarat AAR ruling in Akshar Traders. That ruling was treated as persuasive rather than binding, in view of Section 103, but supported the conclusion reached in the present matter. Accordingly, the seeds were held to be fresh and exempt from GST at NIL rate under the specified exemption entry.
Issue Before the Rajasthan AAR
The central issue was the GST classification of the seeds for determining whether they qualified as “fresh” or “dried” for the purposes of the applicable GST rate notifications.
The question was material because the two categories attracted different GST treatment under the notifications identified in the supplied material. Fresh seeds were covered by Entry 87 of Notification 10/2025-CT(R) at NIL rate, whereas dried seeds were covered by Entry 71 of Notification 09/2025-CT(R) at 5% GST.
Applicable GST Entries
Entry 87 of Notification 10/2025-CT(R) was relied upon for the NIL-rate treatment applicable to the seeds when regarded as “fresh”. The supplied material states that the Authority ultimately held the seeds to fall within this entry.
On the other hand, Entry 71 of Notification 09/2025-CT(R) was identified as the relevant entry where the seeds were treated as “dried”, attracting GST at 5%.
TaxGuru’s publication concerning the revised GST exemption framework reproduces and discusses Notification No. 10/2025-Central Tax (Rate), while its publication on the revised GST rate structure discusses Notification No. 9/2025-Central Tax (Rate).
Finding on Fresh or Dried Character
The Authority accepted that no drying or processing had occurred in respect of the seeds. On that basis, the seeds were treated as “fresh” rather than “dried”.
The distinction between fresh and dried goods was therefore decisive in determining the applicable GST treatment. The supplied material specifically records that the Authority rejected the basis for treating the seeds as dried because no drying or processing was found to have occurred.
The conclusion resulted in the seeds being covered by Entry 87 of Notification 10/2025-CT(R), with GST applicable at NIL rate.
Reference to Akshar Traders
The Authority also considered the Gujarat AAR ruling in Akshar Traders. The supplied material expressly states that the Gujarat ruling was treated as persuasive and not binding under Section 103.
Section 103 concerns the applicability of advance rulings. TaxGuru’s discussion of Section 103 explains the statutory position concerning the binding nature of an advance ruling. The Authority’s treatment of the Gujarat ruling in the present matter was accordingly as a persuasive reference rather than as a binding determination.
The supplied material records that the Gujarat AAR ruling in Akshar Traders supported the conclusion reached by the Rajasthan AAR. The present ruling nevertheless rested on the Authority’s acceptance that the seeds had not undergone drying or processing.
Ruling of the Rajasthan AAR
The Authority for Advance Ruling, Rajasthan ruled that the seeds qualified as “fresh” and were covered by Entry 87 of Notification 10/2025-CT(R).
Consequently, the seeds were held to be exempt from GST at NIL rate. The alternative treatment applicable to dried seeds under Entry 71 of Notification 09/2025-CT(R), carrying 5% GST, was therefore not applied.
The supplied material identifies the absence of drying or processing as the relevant basis for the Authority’s conclusion and records the Gujarat AAR ruling in Akshar Traders as persuasive support.
Conclusion
In re Surendra Bucha (GST AAR Rajasthan) establishes, on the facts supplied, that the seeds were to be regarded as “fresh” because no drying or processing had occurred. The Rajasthan AAR consequently placed them under Entry 87 of Notification 10/2025-CT(R) and held them exempt from GST at NIL rate, rather than treating them as dried seeds taxable at 5% under Entry 71 of Notification 09/2025-CT(R). The Gujarat AAR decision in Akshar Traders was considered persuasive but not binding under Section 103.
