GST Nil Rate for Animal Feed Bio Processed Meal

The product "Preparation of a kind used in Animal Feeding - Bio Processed Meal" was classified under HS Code 23099090, entitling it to a NIL rate of GST. The ruling was specific to the applicant's unit and valid until declared void under the GST Act. The decision was based on the detailed manufacturing process and evidence provided, confirming the product's exclusive use for animal feeding.

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Issues Involved:
1. Classification of the product "Preparation of a kind used in Animal Feeding - Bio Processed Meal" under HS Code 23099090.
2. Applicability of NIL rate of GST on the said product as per Notification 02/2017 - CT (Rate) dated 28.06.2017.

Detailed Analysis:

Classification of the Product:
Initial Submission and Manufacturing Process:
- The applicant, a manufacturer of various soya-based products, sought an advance ruling on the classification of their product "Preparation of a kind used in Animal Feeding - Bio Processed Meal" under HS Code 23099090.
- The manufacturing process involves several steps including removal of metal impurities, mixing with liquid bacteria/enzymes, fermentation, drying, and grinding. The end product is intended for use as aquatic feed, poultry feed, cattle feed, and pig feed.

Applicant's Arguments:
- The applicant argued that the product is specifically meant for animal feeding and falls under HS Code 23099090, which attracts a NIL rate of GST as per Notification 02/2017-CT(Rate) dated 28.06.2017.
- They cited various case laws and explanatory notes to support their claim that the product should be classified under HS Code 23099090.

Authority's Initial Findings:
- The Authority initially ruled that the product does not fall under HS Code 23099090 and is not entitled to a NIL rate of GST. This was based on the applicant’s failure to provide sufficient evidence that the product is exclusively meant for animal feed.

Errors and Rectification:
Applicant's Rectification Request:
- The applicant pointed out errors in the initial order, including incorrect address details and misinterpretation of the protein content statement. They clarified that the protein content statement referred to raw materials and not the finished product.
- They argued that the finished product is indeed meant exclusively for animal feeding and should be classified under HS Code 23099090.

Authority's Rectified Findings:
- Upon review, the Authority acknowledged the errors and accepted the applicant’s clarifications.
- It was noted that the new unit at Plot Number 112, Industrial Area No.1, Dewas, is solely engaged in manufacturing the finished product for animal feeding.
- The Authority found that the detailed manufacturing process and the scientific basis provided by the applicant support the claim that the product is exclusively for animal feeding.

Final Ruling:
- The product "Preparation of a kind used in Animal Feeding - Bio Processed Meal" is classified under HS Code 23099090.
- The product is entitled to a NIL rate of GST under serial no. 102 of Notification No. 02/2017-CT(Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act.
- The ruling is valid for the applicant's unit at Plot Number 112, Industrial Area No.1, Dewas (MP) 455001 with GSTIN 23AABCV1297N3ZY.

Conclusion:
The rectified order confirms that the product "Preparation of a kind used in Animal Feeding - Bio Processed Meal" falls under HS Code 23099090 and is eligible for a NIL rate of GST, provided it is used exclusively for animal feeding. The ruling is specific to the applicant's new unit and is subject to the provisions under section 103(2) until declared void under Section 104(1) of the GST Act.

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