Charges received for cold storage facility for storing ‘Fresh Eggs’ in shell exempt from GST

Categories: Advance Ruling
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Fact: Shubhlaxmi Cold Storage & Ice Factory (P.) Ltd (“The Applicant”) having a cold storage for storing of agriculture produce out of cultivation of plants and poultry eggs which are produce of rearing of life animals/poultry farming. Presently, the Applicant is paying tax on storage charges of the processed agriculture produce and other products. The Applicant took a view that eggs are produce of live chicken farming and are not further processed, therefore service of storing fresh eggs should not be chargeable under GST.

Issue involved: Whether charges received by the cold storage for providing service of storing of eggs, which are produce of rearing of animals/poultry farming, in cold storage are exempted from payment of GST?

Held: The Hon’ble AAR of Rajasthan vide its Advance Ruling No. RAJ/AAR/2018-19/18 dated September 15, 2018 held that eggs are produced out of rearing of chicken (Poultry Farming) for food. Hence, fresh eggs in shell on which no further processing is done are covered under definition of agricultural produce.

Therefore, the charges received by the Applicant for providing service of storing of “fresh eggs” in shell on which no further processing is done, which are produce of rearing of animals/poultry farming, are exempted from payment of GST in terms of Entry No. 24 of the Notification No. 11/2017 Central tax (Rate), dated June 28, 2017 and Entry No. 54 of the Notification No. 12/2017 Central tax (Rate), dated June 28, 2017.

Citation: [2019] 103 taxmann.com 237 (AAR- RAJASTHAN)