Classification of Rodent Feed as Taxable under GST /2017

The Advance Ruling Authority determined that rodent feed falls under HSN 2309 90 10 but is not exempt under Notification no. 02/2017. Despite being classified under this HSN, the product was found taxable under Sl.No.453 of Schedule III of Notification no. 01/2017 at a 9% rate for both CGST and SGST. The ruling stressed strict interpretation of exemption provisions and highlighted that rodent feed did not meet the criteria for exemption, emphasizing adherence to explicit terms in the notifications.

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Issues:
1. Classification of rodent feed under HSN 2309 90 10.
2. Applicability of HSN for the specified product.
3. Exemption status and taxability of rodent feed under Notification no. 02/2017.

Issue 1: Classification of rodent feed under HSN 2309 90 10

The applicant, a bio-technology company, sought clarification on whether rodent feed falls under HSN 2309 90 10 and is eligible for exemption under Notification no. 02/2017. The Authority analyzed the exemption notification, which grouped various items under Serial no. 102, providing an inclusive description without specific mention of rodent feed. Referring to legal precedents, the Authority emphasized strict interpretation of exemption provisions. As rodent feed was not explicitly included, the Authority ruled that it could be classified under HSN 2309 90 10 but was not covered by the exemption.

Issue 2: Applicability of HSN for the specified product

The Authority reiterated the classification of rodent feed under HSN 2309 90 10 based on the applicant's submissions and the exemption notification's provisions. However, as the product did not fall within the specific exemption category, the ruling did not provide a separate HSN applicable for the specified product, maintaining the classification under HSN 2309 90 10.

Issue 3: Exemption status and taxability of rodent feed under Notification no. 02/2017

The applicant contended that rodent feed should be exempt under Serial no. 102 of Notification no. 02/2017, which listed various feed categories eligible for exemption. The Authority, guided by legal principles, highlighted the need for a strict interpretation of exemption notifications. Citing relevant court cases, the Authority emphasized that exemptions must be construed strictly, with no extension beyond the notification's explicit terms. Consequently, the ruling clarified that rodent feed was taxable under Sl.No.453 of Schedule III of Notification no. 01/2017 at a rate of 9% CGST and SGST each, as it was not covered by the specific exemption provision.

In conclusion, the Advance Ruling Authority addressed the classification, applicability, and taxability of rodent feed under the relevant GST notifications, emphasizing strict interpretation and adherence to the explicit terms of exemption provisions. The ruling provided clarity on the classification of rodent feed under HSN 2309 90 10, its exemption status, and the applicable tax rates, ensuring compliance with the GST regulations.

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