GST LEVIABLE ON MECHANIZED CLEANING OF AGRICULTURAL PRODUCE: RAJASTHAN AAR CLARIFIES
RAJASTHAN AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX
Case Title- M/s RARA UDHYOG
(GST AAR RAJASTHAN)
Advance Ruling No. RAJ/AAR/2018-19/06
Date of Judgment/Order- 23rd June 2018
IMPORTANT PARAGRAPHS
Para No. 1. That the applicant is engaged into the activities of cleaning of the various Agriculture produce like Saunf (Fennel) Dhaniya (Coriander), Jeera (Cumin seeds), etc. or the like goods which are brought to them by the farmers or by the traders.
That the agriculture produce contains dust particles, certain small pieces of stones, dust, mud and other impurities etc. The applicant is having cleaning plant and they remove the various impurities but do not change the essential character of the agriculture produce but make the product marketable for primary market.
FINDINGS
Para No. 9. The activity of mechanized cleaning does not fall under intermediate production process as job work in relation to cultivation of plants. Intermediate production process as job work in relation to cultivation of plants usually relates to agricultural operations directly related to production of any agricultural produce such as cultivation, harvesting, threshing, plant protection. testing, and supply of farm labour etc., carried out at agricultural farm.
Hence the activity of mechanized cleaning at an installed plant is not covered under the above clause too and does not attract NIL rate of Tax.
RULING
The activity of the applicant i.e. M/s Rara Udhyog, Jaipur is not covered by Entry S. No. 24 (i)(i)(c) or S. No. 24(i)(iii) of Notification No. 11/2017 Central tax (Rate) dated 28/06/2017 AND Entry S. No. 54(c) or Entry No. 55 of Notification No 12/2017 -Central Tax (Rate) dated 28/6/17 & will not attract NIL rate of tax.
