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.

[KASTURI SETHI]

Classified under Chapter/Heading No. 3101 and exempted vide Notification 2/17-CT(Rate) dated 28.6.17 as amended.. (Serial No.108) refers.

[KASTURI SETHI]

Also go through this decision of AAR.

2018 (14) G.S.T.L. 600 (A.A.R. - GST) = 2018 (7) TMI 965 - AUTHORITY FOR ADVANCE RULINGS, RAJASTHAN IN RE : RHIZO ORGANIC

[YAGAY andSUN]

In re Rhizo Organic (GST AAR Rajasthan) = 2018 (7) TMI 965 - AUTHORITY FOR ADVANCE RULINGS, RAJASTHAN

The goods (Bio Fertilizer or Organic Manure); other than those put up in Unit Container and bearing a brand name; will be covered under Schedule I of rate of GST on Goods and attracts NIL rate of duty & The goods (Bio Fertilizer or Organic Manure); put up in Unit Container and bearing a brand name, will be taxable under GST @ 5%.

[YAGAY andSUN]

2018 (7) TMI 965 - AUTHORITY FOR ADVANCE RULINGS, RAJASTHAN IN RE : RHIZO ORGANIC

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.