Pets grooming taxable?

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RISHI KUMAR

0 Points Joined September 2022

Dated: 27-2-2021
By:- Abhishek Tripathi

1. Kindly refer Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 (as amended from time to time). Accommodation services for pets (kennels), training of pet animals, grooming for pets will fall under Heading 9986 [Nil Rate]. On further elaboration to 6 digits vide Annexure: Scheme of Classification of Services, these services will be under 998612 – Animal Husbandry Services.

2. For 998612 reference may be made to SAC Explanatory Notes which states as under:

998612 Animal husbandry services

This service code includes sheep shearing and care and management of herds of farm animals; artificial insemination of farm animals; grading of eggs; cleaning of agricultural premises (hen houses, piggeries, etc.); accommodation services for pets (kennels); grooming and tattooing services for pets; training of pet animals; Farm animal husbandry services on inputs owned by others like operation of a farm animal production unit on a fee or contract basis

This service code does not include: - services provided by agronomists and agricultural economists, cf. 998311 - veterinary services for pets and other animals, cf. 99835 - training of guard dogs cf. 998529 - recreational riding services, cf. 999652 - training of sport and entertainment animals cf. 999662

3. Veterinary Services will fall under 99835 (Annexure: Scheme of Classification of Services) in Heading 9983. As per Notification 12/2017 Central Tax (Rate) dated 28.06.2017 (as amended from time to time), the services are exempted.

4. In short,
Accommodation services for pets (kennels) – 998612 – NIL Rate.

Replies (3)

CA Prakash N

Head - Indirect Tax (GST & FTP)

373 Points Joined January 2012

Dear Rishi Kumar, The scheme of classification is to be referred to only for the classification of services under a specific HSN. Services such as pet grooming and training can be classified under 998612.

However, to determine the exemption to the specific services, you must refer to notification 11/2017, dated June 28, 2017. Please note entry no. 24 (HSN 9986) of the said notification does NOT provide exemption to services such as kennels, grooming, or training of pet animals. Kindly go through the notification carefully and help us understand on what basis you can claim exemption.

preeti

manager finance

22 Points Joined June 2016

Also please confirm is Hotel Accommodation for Pet is taxable? and at what Tax Rate.
as hotel Stay Tax is divided in two slab rate 0-7499 : 12% More than 7499 @ 18%

MOHIT

58 Points Joined March 2009

Hi CA Prakash N referring to your post on said captioned thread, as i understand GST Tax Rate on Household Pet Grooming services, Pet training services would not be exempt under Notification 11/2007 Central Tax Rate or corresponding IGST notification, becuase HSN 998612 is for Support services to Business or production services engaged in rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products.

Whereas, explainatory notes to Scheme of Classification of services is mainly for analysing classification under which it falls, so the area where it creates confusion is that in explainatory notest to above SAC code, it uses words grooming and tattoing services for pets, training services for pets, but still such services should be inferred to be reffering to support services to those who are in business of providing of business or production services for animal husbandry, Whereas, domestic house hold pet services would not amount to a business or production service.

Hence such services of domestic household pet grooming would not get covered under SAC 998612 and Hence WOULD NOT BE EXEMPT.

Acc. to my understanding such services may get covered in SAC 9997 - Other services (washing, cleaning and dyeing services; beauty and physical well-being services; and other miscellaneous services including services nowhere else classified).or SAC 9998 - Domestic services - both taxable @ 18% tax rate.

This is important to understand clearly to avoid later stage surprises on haunting tax, interest, penalties.

can you pls also confirm your understanding. Thanks