The Goods and Services Tax (GST) applicable to soya husk has been a subject of interpretation, with authorities generally classifying it as taxable at 5%.
Key Points:
-
Tax Rate: Soya husk is typically classified under Heading 2304 as "Oil-cake and other solid residues" resulting from the extraction of soybean oil. As per the relevant notifications under the GST regime, this category attracts a 5% GST rate (2.5% CGST + 2.5% SGST).
-
Authority Clarification: The Madhya Pradesh Authority for Advance Ruling (AAR) in the case of Adani Wilmar Limited clarified that soya husk, being a principal input or ingredient for the manufacture or processing of cattle and poultry feed, is taxable at 5%. While there were arguments suggesting it could be exempt (NIL rated) as cattle feed, the ruling confirmed the 5% classification under the specified tariff entry.
-
Classification: It is generally categorized under HSN code 2304 (or sometimes 2309, depending on the specific product form and usage).
Summary: Soya husk is generally subject to a 5% GST rate in India. It is classified as an oil-cake/solid residue under Heading 2304 rather than being exempt as "cattle feed."