GTA and Exempted goods under GST

[gvenugopal g]

Sirs,

As we are Goods Transport Agency (GTA) registered under GST, carrying various goods and collecting CGST @ 6% and SGST 6%. Kindly let us know the following goods shall it be attracted GST?

TARRIFFDESCRIPTION OF GOODS

1701 or 1702 Jaggery of all types (Cane Jaggery [Gur] & Palmyra Jaggery)

1905 Papad or Appalam, except when served for consumption

0810 Tamarind

1008 Ragi

[Rajagopalan Ranganathan]

Sir,

Only in respect of ragi and tamarind which are agriculturals product they are exempted from gst when transported in a goods transport vehicle vide Sl. No. 22 (a) of Notification No. 9/2017-C.T. (Rate) dated 28.06.2017 as amended. Jaggery and pappad or Applam cannot be treated as agricultural products and hence when transported in a goods transport vehicle they are liable to gst.

[KASTURI SETHI]

I think it is Notification No.12/17-CT(Rate) dated 28.6.17 as amended and Serial No.is 21.

[KASTURI SETHI]

Jaggery of all types are manufactured products. Process of manufacture is involved. Similarly Papad is manufactured product. Hence both are not eligible for exemption from GST for the purpose of transportation of goods by road (GTA). Products should be natural produce and should not undergo any machinery process for the purpose of being marketable.

[Ganeshan Kalyani]

(d) “agricultural produce” means any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market;

[KASTURI SETHI]

Jaggery is manufactured out of sugar-cane juice and essential characteristics are changed. Papad is manufactured out of pulses and essential characteristics of pulses are changed. Both loose their original natural form. Hence cannot be called agriculture produce.

[Ganeshan Kalyani]

Yes, Sir.

AI Summary

Agricultural produce exemption: ragi and tamarind transported by goods transport agencies exempt; processed foods like jaggery and papad not. Ragi and tamarind qualify as agricultural produce and are exempt from GST when transported by a Goods Transport Agency, provided they retain natural characteristics or undergo only customary processing that does not alter essential characteristics. Jaggery and papad are manufactured products whose processing changes essential characteristics, so their transportation by a GTA is subject to GST and not eligible for the agricultural-produce exemption.