Cleaning of agricultural produce away from agricultural farm not entitled to GST exemption: AAR

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Whether as per Entry No. 24(i)(i) of the Notification No. 11 of 2017, Central tax (Rate) dated 28-6-2017 and Entry No. 54(c) or Entry No. 55 of the Notification No. 12 of 2017 Central Tax(Rate) dated 28-6-2017, NIL rate of GST is applicable on given processes only if undertaken at an agriculture farm and not otherwise.

Whether where applicant engaged in activities of cleaning of various Agriculture products like Saunf(Fennel), Dhaniya (Coriander), Jeera(Cumin seeds) etc. was undertaking specialized activity of cleaning whereby they remove various impurities but do not change essential character of agriculture produce but make product marketable for primary market using specific machines and equipment’s which are installed at its premises and away from Agricultural farm, applicant will not be covered by above notifications and will not attract NIL rate of tax.

Citation- [2018] 95 taxmann.com 118 (AAR- RAJASTHAN)