GST applicable on sale of Biocompost

[KARAN VERMA]

Sir

I want to know whether GST applicable on sale of biocompost to farmers.

Bio compost is prepared through press mud which is waste product of sugarcane.

AI Summary

Biocompost Sales to Farmers: GST Exempt for Unbranded Bulk, 5% GST for Branded Unit Containers. Reference: Rhizo Organic Case. A user inquired about the applicability of GST on the sale of biocompost to farmers. Biocompost, derived from sugarcane waste, is classified under Chapter/Heading No. 3101 and is exempt from GST as per Notification 2/17-CT(Rate) dated 28.6.17. However, according to the Authority for Advance Rulings in Rajasthan, biocompost not in unit containers and without a brand name is exempt, while those in unit containers with a brand name are subject to a 5% GST rate. Multiple contributors referenced the decision in the Rhizo Organic case for clarification.