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of <h1>Classification of 'Poultry Meal' and 'Poultry Fat' for GST: Key Sub-Heading Details and Tax Rates</h1> <h3>IN RE : M/s. Sushi Pet Nutriscience</h3> IN RE : M/s. Sushi Pet Nutriscience - 2020 (40) G.S.T.L. 209 (A. A. R. - GST - Telangana) Issues Involved:1. HSN Code and rate of tax for the supply of 'poultry meal'.2. HSN Code and rate of tax for the supply of 'poultry fat'.Issue-wise Detailed Analysis:1. HSN Code and Rate of Tax for 'Poultry Meal':The applicant, M/s. Sushi Pet Nutrisciences, sought an advance ruling on the classification and tax rate applicable to 'poultry meal'. They initially classified 'poultry meal' under HSN Code 2309 9020, claiming it as a concentrate for animal feed, attracting a 'nil' rate of tax.Upon review, the Authority noted that 'poultry meal' is manufactured from chicken waste (legs, heads, intestines, feathers, etc.) through a process involving cooking, drying, and powdering. The final product is used as a raw material in animal feed production. The Authority referred to Chapter Note 23 of the Customs Tariff Act, 1975, which includes products used in animal feeding that have lost the essential characteristics of the original material.The Authority concluded that 'poultry meal' is not a finished animal feed but a raw material for it. Consequently, it cannot be classified under Chapter Heading No. 2309. Instead, it falls under Chapter Heading No. 2301, specifically sub-heading 2301 10 90, which covers 'Flours, meals, and pellets, of meat or meat offal; greaves.'The Authority also referred to Exemption Notification No. 2/2017-CT (Rate) dated 28.06.2017, which exempts certain feeds under Chapter Heading Nos. 2301, 2302, 2308, and 2309. However, since 'poultry meal' is not a finished feed but a raw material, it is not exempted. It attracts a GST rate of 5% (2.5% CGST + 2.5% SGST) under Sl. No. 103 of Schedule-1 of Notification No. 01/2017-CT (R) dated 28.06.2017 (as amended).2. HSN Code and Rate of Tax for 'Poultry Fat':The applicant classified 'poultry fat' under HSN Code 1501 9000, attracting a 12% tax rate (6% CGST + 6% SGST/UTGST). The Authority reviewed the classification and noted that 'poultry fat' is a by-product obtained during the processing of chicken remnants for 'poultry meal'.The Customs Tariff Schedule has two relevant entries for 'poultry fat': Tariff Heading No. 0209 (covering poultry fat not rendered or otherwise extracted) and Tariff Heading No. 1501 (covering poultry fat other than that of Heading No. 0209). Since the applicant's 'poultry fat' is extracted as a by-product, it falls under Tariff item No. 1501 90 00.The Authority confirmed that 'poultry fat' attracts a 12% GST rate (6% CGST + 6% SGST/UTGST) as per entry No. 19 of Schedule-II of Notification No. 01/2017-CT (R) dated 28.06.2017 (as amended).Advance Ruling:1. The product 'poultry meal' is classifiable under Chapter Sub-Heading No. 2301 10 90 of the first schedule to the Customs Tariff Act, 1975, and attracts a GST rate of 5% (2.5% CGST + 2.5% SGST) under Sl. No. 103 of Schedule-1 of Notification No. 01/2017-CT (R) dated 28.06.2017 (as amended).2. The product 'poultry fat' is classifiable under Chapter Sub-Heading No. 1501 90 00 of the first schedule to the Customs Tariff Act, 1975, and attracts a 12% GST rate (6% CGST + 6% SGST/UTGST) as per entry No. 19 of Schedule-II of Notification No. 01/2017-CT (R) dated 28.06.2017 (as amended).
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