TMI BlogGST applicability on sale of residue from food industryX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir Whether GST applicable on residue from food industry which is used for cattle feed. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = In my view 'yes' - Reply By KARAN VERMA - The Reply = sir, this residue is directly consumed by animal by mixing with other grass and straw. - Reply By KASTURI SETHI - The Reply = Pl. elaborate your query. I remember reply on this issue has alrea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy been given in this forum. If you elaborate, that reply can be traced out. - Reply By Ganeshan Kalyani - The Reply = GST is applicable on goods as per their HSN classification. One product can be exempt and other can be taxable. So, the name of the product is necessary to locate that product is the relevant notificaiton. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = The answer is 'y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es' on the common connotation. If you specifically indicate the goods from which the residue comes then it may be different if exemption is available to that goods. - Reply By KARAN VERMA - The Reply = waste product is barley waste which is directly consumed by animal as cattle feed. - Reply By Ganeshan Kalyani - The Reply = If the goods can be called as 'feed supplement' then it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will fall under HSN 2309 and GST is exempt. - Reply By KASTURI SETHI - The Reply = I agree with the reply dated 6.7.2020 of Sh.Ganeshan Kalyani Ji. - Reply By Mahir S - The Reply = Para No 05 of Board Circular No. 80/54 /2018-GST F. No.354/432/2018-TRU dated 31st December, 2018 provides clarification on the issue as under: 5. Applicable GST rate on Animal Feed Supplements/feed additives ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from drugs: 5.2 As per the HSN, 2309 interalia covers reading vitamins and provitamins which improve digestion and, more generally, ensure that the animal makes good use of the feeds and safeguard its health. On the other hand, HS code 2936 coves vitamins and provitamins which are medicinal in nature and have much higher concentration of active substance. 5.5 A product deserves classificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion chapter 29 ( equally applicable to heading 2936 ), if it is an item of general use, e.g., if a product is of specific use, say dietary supplement for human being product particularly suitable for a specific use rather than for general use. Vitamins and provitamins are normally covered under code heading 2936 , but if they re prepared as food supplements in the form of tablets, etc. they wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not be classifiable under this heading as the way they are presented, they are suitable for a specific use. Heading 2309 would cover items like feed supplements for animals that contain vitamins and other ingredients - such as cereals and proteins. These are covered in chapter 23 under heading code 2309 , or antibiotic preparations used in animal feeding - for example a dried antibiotic m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ass on a carrier like cereal middling. The antibiotic content in these items is usually between 8% and 16%. Thus, HS code 2309 would cover only such product, which in the form supplied, are capable of specific use as food supplement for animals and not capable of any general use . If the vitamins, provitamins are supplied in a form in which they are capable of general use, i.e. in the form in w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich it could be used as inputs or raw materials for further processing, instead of being ready to use, then these would be classifiable under heading 2936 . - Reply By Mahir S - The Reply = In view of above clarification, I endorse the view expressed by Sh. Ganeshan ji. - Reply By Bhavika Chothani - The Reply = Cattle feed is covered under GST. But whether this particular good is exempt or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable depends upon the further details of the good - Reply By Ganeshan Kalyani - The Reply = Thanks Sri Kasturi Sir and Sri Mahir Ji. - Reply By KARAN VERMA - The Reply = Sir The waste product from Alcoholic beverage industry is spent grain of rice, wheat, barley which is directly sold to farmers and farmers used as cattle feed for animals. - Reply By Mahir S - The Reply = Yes Karanji I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agree with your views - Reply By Mahir S - The Reply = The views expressed by Bhavika Madam at Point no 11 in the present scenario is also required to be taken into consideration. - Reply By Mahir S - The Reply = Alcohol for human consumption not liable for GST but number of products which emerge during manufacturing process are liable for GST. These products are supplied to manufacturers o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f animal feed and are liable for 5 percent GST. - GST applicability on sale of residue from food industry - Query Started By: - KARAN VERMA Dated:- 3-7-2020 Goods and Services Tax - GST - Got 16 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax ..... 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