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 and SUN]

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 and SUN]

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

AI Summary

GST exemption for organic manure hinges on packaging and branding; bulk unbranded supplies attract nil rate, packaged branded goods are taxable.
Biocompost has been classified under Chapter/Heading 3101 and treated as exempt by the cited notification. An AAR ruling distinguishes that organic manure or biofertilizer supplied in bulk or not put up in unit containers and not bearing a brand name attracts nil GST, while products put up in unit containers and bearing a brand name are taxable under the GST schedule for packaged branded goods.