https://www.taxtmi.com/caselaws?id=429218 The AAR, Punjab ruled that cotton seeds (Banaula) do not qualify as agricultural produce for GST exemption under N/N. 12/2017. The authority held that cotton seeds emerge after processing in mills and fail to meet the essential condition that agricultural produce should not require further processing or processing should be carried by the producer/cultivator. Since exemption notifications must be strictly construed, cotton seeds from intermediate processing do not fall within the agricultural produce definition. Consequently, goods transport agency services for cotton seed transportation are classifiable under heading 9965, attracting CGST at 2.5% (without input tax credit) or 6% (with input tax credit taken) under N/N. 11/2017. en-us Tue, 20 Sep 2022 00:00:00 +0530 Thu, 10 Apr 2025 15:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=429218 The AAR, Punjab ruled that cotton seeds (Banaula) do not qualify as agricultural produce for GST exemption under N/N. 12/2017. The authority held that cotton seeds emerge after processing in mills and fail to meet the essential condition that agricultural produce should not require further processing or processing should be carried by the producer/cultivator. Since exemption notifications must be strictly construed, cotton seeds from intermediate processing do not fall within the agricultural produce definition. Consequently, goods transport agency services for cotton seed transportation are classifiable under heading 9965, attracting CGST at 2.5% (without input tax credit) or 6% (with input tax credit taken) under N/N. 11/2017. Case-Laws GST Tue, 20 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=429218