Cotton Seed De-Oiled Cake Does Not Attract GST: WBAAR

The applicant sells items related to animal feed, where it obtains cotton seed de-oiled cake (HSN 23061020) and sells it to its customers as animal feed. The applicant noted that different suppliers are applying GST differently, as some are imposing 5% GST on the sale of cotton seed de-oiled cake, while others do not charge GST at all, calling the product cotton seed meal.

Therefore, due to this confusion, the applicant filed an application before the West Bengal Authority for Advance Ruling (WBAAR) to get an advance ruling on the following questions:

“(i) Is cotton seed de-oiled cake (HSN 23061020) subject to a 5% GST when used as animal feed?

(ii) If GST is applicable, is the applicant entitled to claim Input Tax Credit (ITC) on the GST paid for the purchase of this product?

(iii) Whether GST is applicable on the purchase, charging @5% as GST on the sale of cotton seed de-oiled cake to his customer or is the sale exempt from GST?”

As per the West Bengal Authority for Advance Ruling (WBAAR):

• There is no GST on the cotton seed de-oiled cake (HSN 23061020), no matter how it is being used. From 22.09.2017, cotton seed oil cake is exempt from tax irrespective of its use.
• Since it is exempt from tax, no Input Tax Credit (ITC) can be claimed against it.