AAR rejects application for classification of BIOFOS Monocalcium Phosphate imported for animal/poultry feed etc

Categories: Advance Ruling
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Facts: M/s Mosaic India Pvt Ltd is registered in terms of the CGST Act, 2017, imports BIOFOS Monocalcium Phosphate and sells it to whole sellers or manufacturers of animal feed. The subject goods are used as an animal poultry feed supplement/additive that is added to an animal poultry feed to enhance its nutritional value. They have submitted that the subject feed acts as a source of phosphorus and calcium and fluorine that helps meet animal poultry requirements for these essential nutrients. Further the subject goods are covered under the Heading 2309 of the First Schedule to the Customs Tariff Act, 1975 (CTA). The applicant has further submitted that, being a poultry feed and the fact of being covered under Heading 2309, the subject goods would fall within Sr. No. 102 of Notification No. 2/2017 – Central Tax (Rate) dated 28.06.2017 and therefore GST would not be payable on the supply of the subject goods.

Issues Involved: The applicant, seeking an advance ruling in respect of the following questions connected to the issues are as follows: –

  1. Whether the subject goods proposed to be supplied by the applicant merits classification under the Heading 2309, (Sr. No. 102) in terms of Notification No. 2/2017 – Central Tax (Rate) dated 28.06.2017 and is therefore exempt from the levy of Central Goods and Services Tax (CGST) under the Central Goods and Services Tax Act, 2017 (CGST Act)?
  2. Whether the subject goods proposed to be supplied by the applicant merits classification under the Heading 2309, (Sr. No. 102) in terms of Notification No. 2/2017 – Integrated Tax (Rate) dated 28.06.2017 and is therefore exempt from the levy of Integrated Goods and Services Tax (IGST) under the Integrated Goods and Services Tax Act, 2017 (IGST Act)?
  3. Whether the subject goods proposed to be supplied by the applicant merits classification under the Heading 2309, (Sr. No. 102) in terms of Notification No. 2/2017 – State Tax (Rate) dated 29.06.2017 and is therefore exempt from the levy of Maharashtra Goods and Services Tax (SGST) under the Maharashtra Goods and Services Tax Act, 2017 (MGST Act)?
  4. Further, if the Subject product is not classifiable under any of the aforesaid entries (Heading 2309) what would be the appropriate classification for the same and at what tax rate would CGST, SGST and IGST be imposable on its supply?”

Held: The Hon’ble AAR of MAHARASHTRA vide Advance Ruling No. GST-ARA-32/2017-18/B-40 dated May 25, 2018 held that the import consignments have been provisionally assessed for classification and accordingly, applicability of Customs duty and IGST on the same, the application is liable for rejection as per proviso to section 98 (2) of the CGST Act, 2017 referred above and therefore cannot be entertained by this authority and is accordingly rejected.

Citation: Mosaic India Pvt. Ltd. (Authority For Advance Riling) of MAHARASHTRA 

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