GST Rate on Ground Nuts - Exempt or 5%

[Krishna Murthy]

As per S No 81 of 2/2017 CTR Notification Ground Nuts are exempted from tax when the same is of seed quality. While the Ground Nuts are other than seed quality it is taxable at 5% as per S No 65 of Schedule 1 of Notification No 1/2017. My question is how can the seller or assessing officer determine whether the Ground Nuts are used by the buyer for seed purpose or other than the seed purpose. It is to be noted here that the same quality seed can be used for seed purpose or for oil extraction (other than seed).

Does these provisions mean seed quality should be seen from seller point of view irrespective of usage by the buyer or the seller is supposed to take any declaration from the buyer regarding its usage.

AI Summary

Debate on GST Rate for Ground Nuts: Exempt or 5% Tax? Seller Must Prove Buyer's Intended Use for Exemption. A discussion on the GST rate applicable to ground nuts focuses on whether they are exempt or taxed at 5%, depending on their quality as seed or otherwise. The main issue is determining the end use of ground nuts, as they can be used for sowing or oil extraction. Participants suggest that the seller should ascertain the buyer's intended use, possibly requiring a declaration or documentation like a seed certificate, to justify claiming a tax exemption. The burden of proof for exemption lies with the seller, who must comply with GST laws and relevant circulars.