Rice unfit for humans and used for other purposes to attract 5% GST: AAR


unfit for human consumption and used for other purposes would not be exempt from the (GST), the Chhattisgarh authority for advance rulings (AAR) has ruled.

The farm produce would attract 5 per cent GST, said AAR. Shraddha Traders, which runs a mill, sought a ruling from the AAR on paddy unfit for human consumption and used in industries, manure production and cattle feed.

Tax rates under are based on their classification under the harmonised system of nomenclature (HSN). The AAR said the farm produces merits classification under 100610 which attract five per cent .

However, the authority could not find an adequate rate for this rice on the basis of its final product such as industrial, manure or cattle feed as the applicant had not given details of the procedures.

Sandeep Sehgal, partner, tax, at AKM Global, said since the rejected/damaged paddy is not fit for human consumption, the same cannot be classified as rice or paddy exempted from tax.


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