Maize Bran used to manufacture cattle feed cannot be construed as ‘cattle feed’ and, accordingly, it will attract GST @ 5%

GUJARAT AUTHORITY FOR ADVANCE RULING,
GOODS AND SERVICES TAX,
A/5, RAJYA KAR BHAVAN, ASHRAM ROAD,
AHMEDABAD – 380 009.

ADVANCE RULING NO. GUJ/GAAR/R/49/2020
(IN APPLICATION NO. Advance Ruling/SGST&CGST/2019/AR/02)
Date: 30.07.2020

Name and address of the applicant :M/s Sanstar Biopolymers Limited,
Sanstar Nagar, Sukhpar Road, Village-Morgar, Bhachau, Kachchh-Gujarat- 370020.

GSTIN of the applicant :24AACCS7445N1ZY

Date of application: 05.01.2019

Clause(s) of Section 97(2) of CGST / GGST Act, 2017, under which the question(s) raised. :(b) applicability of a notification issued under the provisions of this Act;
(e) determination of the liability to pay tax on any goods or services or both.

Date of Personal Hearing: 09.07.2020 (Through Video Conferencing)

Present for the applicant :Ms. Yashasvi Jain

B R I E F FA C T S:

The applicant, vide their application for Advance Ruling, has submitted that they are engaged in the manufacture and taxable supply of Maize starch and its derivatives in their plant at Village-Morgar, Taluka- Himatnagar, Bhachau, Kutchh, Gujarat.

2. The applicant further submitted that in the course of manufacture, Maize Bran is produced by corn wet milling which is a by-product and is sold as cattle feed; that Bran is the hard-outer layers of cereal grain and along with germ, it is an integral part of whole grains and is often produced as a by-product of milling during the production of refined grains; that Maize Bran is one such inevitable by-product of various maize processing industries; that the production of Maize Bran amounts to 13% of the total production of the applicant and is found in three different forms: (a) Maize Bran dry (b) Maize Bran wet (c) Maize Bran(CSL mixed); that Maize Bran theoretically consists of the bran coating removed in the early stages of wet milling; that Maize Bran is composed of approximately 12-25% starch, 10-13% protein, 33-42% hemicelluloses, 15-18% cell cellulose, 3-6% oil, and 1-2% other components; that maize bran stream coming from dewatering presses contains about 30 to 50% solids; that the maize bran is usually a mixture of the bran fraction and other by-products and is, therefore, a very loosely defined product of highly variable composition usually sold as a major ingredient for cattle feed; that the applicants supply Maize Bran as feed commodities to local farmers and even manufacturers engaged in manufacturing cattle feed who often mix maize bran with other maize processing by-products.

To know more in details find the attachment file