TaxTMI 
TaxTMI 
2025 (10) TMI 1021
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.... by the West Bengal Authority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression „GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant operates in the business of selling items relating to animal feeding as trading activities. The applicant procures cotton seed de-oiled cake (HSN 23061020) which is sold as animal feed to his customers. It has come to his attention that suppliers of this product are adopting varying practices concerning the application of GST rates of tax. Specifically, some suppliers are charging @5% GST on the sale of cotton seed de-oiled cake, while others do not levy any GST a....
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....102 of Notification No. 2/2017-Central Tax (Rate). The exemption applies irrespective of the supply channel, provided the product is intended for use as cattle feed. Key Points from the Judgment: End Use Determination: The court clarified that it is not the responsibility of the supplier to ascertain the end use of the product. The supplier is entitled to claim the exemption if the product is sold as cattle feed, regardless of whether it is supplied to traders or directly to end-users. GST Exemption Applicability: The exemption under Entry No. 102 of Notification No. 2/2017-Central Tax (Rate) applies to the supply of cotton seed oil cakes when they are used as cattle feed. The court upheld this exemption, quashing the earlier orders of the Adjudicating and Appellate Authorities that had denied the exemption. 2.3 That a clarification was sought for before the Ld. P.R.O. State Goods and Services Tax and the Ld. P.R.O. was pleased to elucidate that "No GST is applicable for sale of cotton seed oil cake for animal feed purpose" and stated that for further clarification and to know the taxability on the said goods an advance ruling under section 97 of the Central / West Beng....
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....s used as animal feed. It is also submitted that according to Entry No. 102 of Notification No. 2/2017-Central Tax (Rate), "Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake" are exempted from GST. This exemption is contingent upon the product being specifically utilized for feeding aquatic animals. 4.4 Reference has been made by the applicant to the case of Dharti Industries vs. Office of Commissioner (Appeal) & Ors. where the Hon'ble Gujarat High Court held that the supply of cotton seed oil cakes (HSN 23061020), commonly known as "KHOL," is exempt from Goods and Services Tax (GST) when used as cattle feed. The court emphasized that the end use of the product, whether supplied directly to end-users or through traders, does not affect its eligibility for exemption under Entry No. 102 of Notification No. 2/2017-Central Tax (Rate). The exemption applies irrespective of the supply channel, provided the product is intended for use as cattle feed. The applicant has highlighted the following key points of the above mentioned judgment: ....
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....nt kinds of cotton seed oil cake. The items are as under: Sl No. Description Tariff Item No. 1 Oil cake and oil cake meal, decorticated, expeller 23061010 2 Oil cake and oil cake meal, decorticated solvent extracted variety 23061020 3 Oil cake and oil cake meal, un-decorticated expeller 23061030 4 Oil cake and oil cake meal, un-decorticated solvent extracted variety 23061040 4.7 For addressing the issues raised in the application we have to refer to the tables, both exempted and taxable, in Notification No. 02/2017-Central Tax (Rate) dated 28/06/2017 with all the relevant amendments made subsequently. Our reference in this respect will be time specific. From 01.07.2017 to 21.09.2017: For this period reference is to be made to the following two entries: 102 Exempt 2301, 2302, 2304, 2305, 2306, 2308, 2309 Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & deoiled cake NIL 107 I 2306 Oil-cake and other solid residues, whether or not ground or in the form of pellet....