SOYABEAN GST RATE AND HSN IN TAX INVOICE

[Allauddin Patel]

Dear sir/ madam 

If we purchase soyabean( yellow seeds) from farmers and sell to registered dealer or factory, what is GST rate and full HSN code shoul we mention in tax invoice ?

[Sadanand Bulbule]

Unprocessed soyabeans, whether or not broken (whole seeds, not roasted/crushed) is exempt from GST vide Notification No. 2/2017-Central Tax(Rate) dated 28/06/2017.

HSN Code: 1201 90 00

[Sadanand Bulbule]

For further calrity, the following Entry No. 80 of the Notification No. 12/2017-Central Tax( Rate) dated 28/06/2017 is reproduced:

 

80.

1201

Soya beans, whether or not broken, of seed quality.

[Sadanand Bulbule]

The following Entry No. 64 of Notification No. 1/2017-CT ( Rate) dated 28/06/2017  prescribes 5% GST, if it is for other than sowing purpose. So this is relevant for your query.

64.

1201

Soya beans, whether or not broken other than of seed quality.

[Allauddin Patel]

Yes sir ...I had seen this in updated list of goods GST rate list issued by CBIC after GST reduction ...

They have shown 1201 soybean wether or not broken of seeds quality is nill rate .

1201 soyabean wether or not broken other than seeds quality is taxable at 5%.

So my clarity is now .... HSN 12019000 and 5% GST we should mention in tax invoice ... 

Am I correct sir ?

[Sadanand Bulbule]

Absolutely right Sir

[Allauddin Patel]

Thank you very much for clarification ....

[Shilpi Jain]

If the soyabean you are selling are of seed quality then it would be 0% GST.

 

If it is not of seed quality then 5%. The rate notification states that the quality should be such and it is not necessary to prove that in fact it has been used as seed in case you are charging 0%.

[Allauddin Patel]

we do not sell this to farmers for sowing madam Shilpi Jian.

we sell this soyabean seeds to factory who crush this and extract oil and cake from this . then how is this 0% ?

AI Summary

Seed-quality soyabeans HSN 12019000 zero-rated; non-seed soyabeans under HSN 1201 taxable at 5% GST, invoices must state HSN and rate Unprocessed soyabeans fall under HSN 1201; seed-quality soyabeans are zero-rated while soyabeans other than seed quality attract 5% GST. The appropriate HSN for seed-quality is 12019000; invoices should state the HSN and the applicable rate. Classification depends on the quality (seed vs. non-seed) rather than the buyer's intended use, so consignments sold to factories for crushing are ordinarily treated as non-seed quality and taxable at 5%, unless the supplier can substantiate seed-quality status.