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Chapter 23 - Residues and waste from the food industries; prepared animal fooder

Notes
Heading 2309 includes products of a kind used in animal feeding, not elsewhere specified or included, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, other than vegetable waste, vegetable residues and by-products of such processing.
GST Rates of Goods
Chapter HeadingDescriptionRate of GSTScheduleSr.No
2301Flours, meals and pellets, of meat or meat offal, of fish or of crustaceans, molluscs or other aquatic invertebrates, unfit for human consumption; greaves5%I103
2302Bran, sharps and other residues, whether or not in the form of pellets, derived from the sifting, milling or other working of cereals or of leguminous plants [other than aquatic feed including shrimp feed and prawn feed, poultry feed and cattle feed, including grass, hay and straw, supplement and husk of pulses, concentrates and additives, wheat bran and de-oiled cake]5%I103A<sup>1</sup>
2303Residues of starch manufacture and similar residues, beet-pulp, bagasse and other waste of sugar manufacture, brewing or distilling dregs and waste, whether or not in the form of pellets5%I104
2304Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil [other than aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake]5%I105
2305Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of ground-nut oil [other than aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake]5%I106
2306Oil-cake and other solid residues, whether or not ground or in the ! form of pellets, resulting from the extraction of vegetable fats or oils, other than those of heading 2304 or 2305 [other than aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses. concentrates & additives, wheat bran & de-oiled cake]5%I107
2307Wine lees; argol5%I108
2302Rice bran (other than de-oiled rice bran)5%I103B<sup>2</sup>
2304Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil [* * *]5%I105<sup>3</sup>
2305Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of ground-nut oil [* * *]5%I106<sup>1</sup>
2306Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of vegetable fats or oils, other than those of heading 2304 or 2305 [* * *]5%I107<sup>2</sup>
2301Aquatic feed including shrimp feed and prawn feed. poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102<sup>3</sup>
2302Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102
2304Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102
2305Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102
2306Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102
2308Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102
2309Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102
2301Aquatic feed including shrimp feed and prawn feed. poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102<sup>4</sup>
2301Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake [other than rice-bran]0%-102<sup>5</sup>
2302Aquatic feed including shrimp feed and prawn feed. poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102<sup>3</sup>
2301Aquatic feed including shrimp feed and prawn feed. poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102<sup>4</sup>
2301Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake [other than rice-bran]0%-102<sup>5</sup>
2304Aquatic feed including shrimp feed and prawn feed. poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102<sup>3</sup>
2305Aquatic feed including shrimp feed and prawn feed. poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102<sup>3</sup>
2306Aquatic feed including shrimp feed and prawn feed. poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102<sup>3</sup>
2308Aquatic feed including shrimp feed and prawn feed. poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102<sup>3</sup>
2308Aquatic feed including shrimp feed and prawn feed. poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102<sup>4</sup>
2308Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake [other than rice-bran]0%-102<sup>5</sup>
2309Aquatic feed including shrimp feed and prawn feed. poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102<sup>3</sup>
2309Aquatic feed including shrimp feed and prawn feed. poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake0%-102<sup>4</sup>
2309Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake [other than rice-bran]0%-102<sup>5</sup>
Other Exemptions
DescriptionNotification
Exemption from Registration - Small Taxpayers having turnover below threshold limitNotification No. 10/2019-C.T., dated 7-3-2019
Composition Levy Scheme for Small Taxpayers having Turnover Up to Rs. 1.5 Crore — Old SchemeNotification No. 8/2017-C.T., dated 27-6-2017
Composition Levy Scheme for Small Taxpayers having Turnover up to Rs. 1.5 Crore — New SchemeNotification No. 14/2019-C.T., dated 7-3-2019
Scheme to Pay GST @6% - For Taxpayers having turnover less than Rs. 50 Lakhs and Not Eligible for Composition Scheme.Notification No. 2/2019-C.T. (Rate), dated 7-3-2019
Exemption to Specified Goods supplied to Specified Recipients for Petroleum Exploration etc.Notification No. 3/2017-Central Tax (Rate), dated 28-6-2017]
Exemption to Goods Supplied to CSD by way of Refund Notification No. 6/2017-Central Tax (Rate), New Delhi, dated 28-6-2017.
Exemption to goods supplied by CSDNotification No. 7/2017-Central Tax (Rate), New Delhi, dated 28-6-2017
United Nation, International Organisation and Foreign Diplomatic Mission Notified as Entitled for refund of GST Paid on supplies received.Notification No. 16/2017-Central Tax (Rate), dated 28-6-2017
Reduced GST on Supply of Goods to ExporterNotification No. 40/2017-CT. (Rate), dated 23-10-2017
Concessional GST on Supply of Scientific and technical equipment to research institutionsNotification No. 45/2017-C.T. (Rate), dated 14-11-2017
Departmental Clarifications / Case Law
Cattle Feed
Entry 102 of the exemption Notification No. 2/2017-Central Tax (Rate) is not open ended. It cover those goods that are falling under Chapter Headings 2301, 2302, 2304, 2305, 2306, 2308 and 2309 and which satisfy the description of goods as animal feed, supplement, concentrate and additives are covered: Di Calcium phosphate (28352610) of animal feed grade, which is covered under Entry No. 105 of Notification No. 2/2017-Integrated Tax (Rate); In Re: Uttara Impex Pet. Ltd., 2019 (20) G.S.TL 452 (A.A.R. - GST).
Cattle Feed
Cattle feed is manufactured from the groundnut oil cake, rice, jaggery, salt and water. It is meant for domestic animals. The Product Cattle feed in cake form' manufactured by the applicant is classifiable under Chapter Heading 2309 90 10 and stands exempted as per vide SI. No. 102 of Notification No. 2/2017-Central Tax (Rate), dated 28th June, 2017 as amended. In Re: C. P.R. Mills, 2018 (17) G.S.T.L 146 (A.A.R. - GS7).
Cattle Feed - De-oiled Mahon Cake/De-oiled Rice Bran
By-product obtained during the Soh ent Extraction process,-used as ingredient of fish meal/cattle feed - Classifiable under Headings 2308 and 2309 of Customs Tariff Act, 1975 - exempted by Entry 102 and de-oiled rice bran specifically exempted under Entry 102A of Notification No. 7/2018-CT. (Rate). Input Tax Credit - Common inputs used for both taxable and exempted supplies - Applicant required to reverse the credit proportional to the amount of credit pertaining to the exempted supplies immediately - Section 17(2) of Central Goods and Services Tax Act, 2017. In Re: Ind, Prosoya Foods (P) Ltd. 2018 (17) G.S.T.L. 35 (AAR-GST).
Blobs mono calcium phosphate/Di-calcium phosphate
Animal/ Poultry/Aqua feed supplement - Exemption under GST - Admissibility - Aforesaid product classifiable under Tariff Item 2309 90 90 of Customs Tariff Act, 1975, is a feed grade mono calcium phosphate and being marketed accordingly - Thus it is fully covered under Entry 102 of Notification No. 2/2017-CT. (Rate) - Exemption admissible. In Re: Srivet Hatcheries 2018 (19) G.S.T.L. 140 (A.A.R. - GST)
Animal feed nutrition containing 'Thiamine mononitrate' (Vitamin B 1 ) is classifiable under CTH 2309.90 - Sumnex Commercial Pvt. Ltd. v Commissioner - 2007 (211) ELT 273 (Tri.- Chennai).
Eggs
Anemia Cyst (Brine Shrimp Eggs) being eggs containing embryo are classifiable under CTH 2309.90 as feeding materials for prawns.- Atherton Engineering Co. PA Ltd. v Union of India- 2010 (256) ELT 358 (Cal.).
is nothing but soap nut powder hence classifiable under Chapter 14 and not under heading 33.05. SRK Products v Commissioner 2007 (213) ELT 34 (Tri.-Bang.). This judgment was affirmed by Hon'ble Supreme Court.
Sabai Grass (a kind of grass used for making of rope, baskets, etc.)
Sabai grass is used as plaiting material and is classifiable tinder heading 1401 and attracts 5', GST. C.B.L & C Circular F. No. 332/2/2017-TRU, dated 7-12-2017
"Microvit E Promix 50" used in preparation of animal feeding is classifiable under CTH 23.09- Collector N Avet Chemicals- 2001 (137) ELT 1304 (Tri- LB).
Poultry Waste
High Protein Poultry Mash (HPPM) in powder form, cleared to DTA unit by 100% EOU after subjecting various processes describing as;poultry feed supplement' is classifiable under CTH 2309 and not under 23.01, as it is neither a residue nor a waste from food industry- Supreme Suguna Foods Co. Ltd. v Commissioner- 2015 (316) ELT 341 (Tri.- Chennai).
Rigenera NP 7.11 imported as fertilizers, but as per chemical test report Nitrate is absent and the goods are containing meat and bone meal of cattle origin and such animal feed cannot be possible to be used as fertilizer is classifiable under CTH 2309 90 90- Overseas Carrier v Commissioner- 2009 (244) ELT 81 (Tri.-Del.). This order was maintained by Supreme Court in 2012 (275) ELT A107 (SC.).
Rovimix AD3- 500/100 (Feed Grade) (Poultry Feed Supplement) which contain vitamins as active ingredients and other ingredients like starch etc. is classifiable under CTH 2309.90- Chokhani Pharma Vet v Commissioner - 2001 (134) ELT 101 (Tri.-Mumbai).
Rovimix E-50 SD, Rovimix H-2 and Rovimix E-50 HD specifically used for animal feeding are classifiable under CTH 23.09 - Commissioner v Piramal Healthcare Ltd.- 2004 (178) ELT 487 (Tri.- Mumbai).
Vitamin E40-50%, cannot be termed as animal feed supplement. Hence is not classifiable under CTH 23.09, and especially so, being a notified item. It is classifiable under CH 29.36 and not under CTH 23.02, even though used as animal feed supplements- Commissioner v Sonam International- 2012 (279) ELT 326 (All.).
Vitamin-E 50%, adsorbate containing Vitamin-E an silica in composition known to find use as additives in animal feed is classifiable under CTH 2309.90 - Commissioner v Lalchand Bhimraj- 2007 (220) ELT 189 (Tri.- Chennai).
Rice bran
Rice bran falls under HS code 2302 and attracts Nil GST if supplied as cattle feed or 5% if supplied for other purposes. C.B.I. & C. Circular F. No. 332/2/2017-TRU, dated 7-12-2017
"De-oiled rice bran" produced during extraction of vegetable oil from 'Rice Bran'-HS code 2306 includes de-oiled rice bran obtained as a residue after the extraction of oil from rice bran. De-oiled bran supplied for use as cattle feed attracts Nil GST. De-oiled rice bran for other uses attracts 5% GST. C.B.I. & C. Circular F. No. 332/2/201 7-TRU, dated 7-12-2017
Cotton seed oil cakes fall under HS Code 2306. Prior to 22-9-2017-Cotton seed oil cakes for use as aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed attract Nil GST: and Cotton seed oil cakes for other uses attract 5% GST. With effect from 22-9-2017 cotton seed oil cakes attract Nil GST. [Notification No. 28/2017-Central Tax (Rate) C.B.I. & C Circular F. No. 332/2/2017-TRU, dated 7-12-2017
Pet Food
Dog or cat foods fall under heading 2309 and attracts 18% GST under the residual entry S. No. 453 of Schedule IV. C.B.I. & C. Circular F. No. 332/2/2017-TRU, dated 7-12-2017