GST on paddy seeds

[Kavali Ramanjeneyulu]

One dealer is trading in purchase and sale of Paddy seeds. He is claiming exemption under Notification no. 2/2017-CT dt 28.06.2017 vide s. 70 ( HSN 1006- Rice). But in this entry, Paddy seeds is not mentioned . He is claiming that it covers HSN 1006 10 10 - of seed quality. I request to provide clarification i.e Whether Paddy seeds are exempted or not ? If exempted , what is the HSN No.

[DR.MARIAPPAN GOVINDARAJAN]

In my view seeds are exempted from GST

[KASTURI SETHI]

Rice seed and paddy seed are same. Exempted but subject to the conditions laid down in Annexure-I to Notification No.2/17-CT(Rate) dated 28.6.17 as amended. HSN mentioned by you is correct. Sub-headings are always part of main heading.

[YAGAY and SUN]

As per GST Law, there is no GST payable on Seeds used for sowing. So the rate of GST payable on Seeds used for sowing is nil rate. Rice Seeds are seeds only but paddy is rice seedling. However, both are exempted under the provisions of GST laws read with Notification no. 2/2017-CT dtd 28-06-2017.

[Ganeshan Kalyani]

The condition states that - not put up in a unit container and not bearing a registered brand name, then the product is exempt.

AI Summary

GST exemption on seeds: paddy and rice seeds used for sowing are nil rated subject to packaging and branding conditions.
GST exemption applies to seeds used for sowing, including rice/paddy seeds, which are nil rated under the notification provided the Annexure I conditions are met; notably the product must not be put up in a unit container and must not bear a registered brand name, and sub headings of the rice tariff heading (HSN) are read as part of the main heading for classification.