Seeds not to be covered under agricultural produce for GST: AAR

  • Blog|GST & Customs|News|
  • 56 Views
  • |
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 18 May, 2022

Seeds under agricultural produce for GST

Case Details: Authority for Advance Rulings, Telangana M. Narasimha Reddy & Sons, In re - [2022] 138 taxmann.com 95 (AAR-TELANGANA)

Judiciary and Counsel Details

    • B. Raghu Kiran & S.V. Kasi Visweswara Rao, Member

Facts of the Case

The applicant was engaged in business of production and processing of agricultural seeds. It filed an application for advanced ruling to determine whether cleaning, drying, grading and treatment with chemicals by the applicant would be exempt from payment of GST.

AAR Held

The Authority for Advance Ruling observed that seed and grain are not one and the same. The law applicable to grain and seed will be different and therefore concessions applicable to grain produced by a cultivator will not be applicable to seed. In the instant case, the applicant was supplying goods which are produce of cultivation of plants. However they are of seed quality and not grain, therefore they are not meant for food, fibre, fuel or raw material for further processing. Moreover, the processing done to turn grain into seed quality goods would be different from the processing done by a cultivator or producer of grain for primary market i.e., agricultural mandi or agricultural market yard. Therefore, the seed quality goods produced can’t be treated as agricultural produce and storage, loading, unloading & packing of seeds and undertaking processes like cleaning, drying, grading and treatment with chemicals would not be exempt from GST.

List of Cases Reviewed

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied