rates on guar churi

Rate / HSN codes 3384 views 6 replies
guar churi will fall under which rate ir whether it is exempted
Replies (6)

5 % GST over.......... 1302 Guar meal or guar gum refined split

and gst rates on guar gum powder for textile printing
and gst rates on guar gum powder for textile printing
 

HSN code 2306 to 2309 covers all types of cattle feed and animal feed. These are tax free material as per GST Law. It means that any material which is supplied for the purpose of animal/cattle feed is exempted from GST Tax.

 

Guwar Churi or Korma being used for Animal/Cattle Feed is totally exempted as it is used for production of Milk (which is end product) & other by products of milk which are also totally exempted. Further cattle feed (raw material) cost is more than 90% of total cost of milk production cost. If Churi or Korma is taxable then how manufacturer will take credit of this cost item.

 

5 % tax is applicable on supply of Guwar churi and korma if the same is being supplied for any purpose other than cattle feed like for medicines or any other purpose. Guar Gum is being used for many other reasons and the byproduct of same which is Churi or Korma is being used for cattle/animal feed.

 

Supplier has to clearly mention “CATTLE FEED ITEM” on their bill along with HSN code i.e. 2306-2309 and while supplying this material.

 

We had went to GST Seva Kendra and they had also confirm the same. There is no need of worry, as per GST Act, cattle feed is totally exempted (2306-2309) it means any items sold under this HSN code is exempted and supercedes other taxable HSN code if any.

 

 
of guar churi is used for cattle feed then it should be exempted because cattle feed under hsn 2306 is exempted
 guar churi is taxable at 5% but if guar churi is used for cattle feed then it should be exempted because cattle feed under hsn 2306 is exempted. pls help whether my understanding is correcr.


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