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.
