GST Applicability on Commission, Veterinary, and Laboratory Services Provided to Poultry Industry: AAR:

GST Applicability on Commission, Veterinary, and Laboratory Services Provided to Poultry Industry: AAR M/S. Venkateshwara Hatcheries Private Limited is the legal applicant in this case. The applicant here is a registered company with the address Venkateshwara House, S.No.114/A/2, Pune-Sinhagad Road, Pune-411030. The Venkateshwara Hatcheries group, also known by the short name "VH Group," was established in the 1970s and has been involved in the poultry industry for over 40 years. In past, the company has played a big role in making India’s poultry sector more organised and professional. Today, it is the biggest fully integrated poultry company in all of Asia. This means it handles everything related to poultry in one system, from breeding high-quality birds to making vaccines, medicines, and even special disease-free eggs. The group has strong research, technology, and infrastructure, which have helped it stay a leader in the market.

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Questions Raised by Applicant

The current application has been filed by the applicant, i.e., M/S. Venkateshwara Hatcheries Private Limited, under Section 97 of the Central Goods and Services Tax Act, 2017, and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as "the CGST Act and MGST Act," respectively], seeking the advance ruling in respect of the following questions: "Question 1. Whether the commission charged by VHPL under the selling arrangement for promoting, marketing, and selling birds of VRBF and Venco should be classified under Service Accounting Code 9986?" Question 2. Whether commission @ 10% of the sale value of birds of VRBFL and Venco received by VHPL under the selling arrangement for promoting, marketing, and selling birds and handling the sale administration would be exempt as per entry number 54 of notification number 12/2017-Central Tax (Rate) dated 28 June 2017? Question 3. Whether charges received @ 3% of the sale value of birds of VRBFL and Venco for the veterinary services provided by VHPL (SAC 99835) would be exempt from levy of GST as per entry number 46 of notification number 12/2017-Central Tax (Rate) dated 28 June 2017, as veterinary services? Question 4. Whether laboratory testing and analysis undertaken by VHPL to carry out various laboratory analysis and tests in respect of the birds, including feed, water, etc., in relation to the brooding, growing, and laying of birds, should be classified under Service Accounting Code 9986? Question 5. Whether charges received @ 7% of the sale value of birds of VRBFL and Venco for the laboratory testing and analysis services provided by VHPL would be exempt from levy of GST as per entry number 54 of notification number 12/2017-Central Tax (Rate) dated 28 June 2017, as agricultural extension services?"

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What Did Maharashtra AAR Say?

In accordance with the Maharashtra Authority for Advance Ruling (MAAR), the above questions are being answered as follows under Section 98 of the Central Goods and Services Tax Act, 2017, and the Maharashtra Goods and Services Tax Act, 2017: Answer 1. No, the commission charged by VHPL under the selling arrangement for promoting, marketing, and selling birds of VRBF and Venco should not be classified under Service Accounting Code 9986. Answer 2. No, commission @ 10% of the sale value of birds of VRBFL and Venco received by VHPL under the selling arrangement for promoting, marketing, and selling birds and handling the sale administration would not be exempt as per entry number 54 of notification number 12/2017-Central Tax (Rate) dated 28 June 2017. Answer 3. Yes, charges received for 3% of the sale value of birds from VRBFL and Venco for the veterinary services provided by VHPL (SAC 99835) would be exempt from the levy of GST as per entry number 46 of notification number 12/2017-Central Tax (Rate) dated 28 June 2017 as Veterinary service. Answer 4. No, laboratory testing and analysis undertaken by VHPL to carry out various laboratory analysis and tests in respect of the birds, including feed, water, etc., in relation to the brooding, growing, and Laying of birds should not be classified under Service Accounting Code. 9986. Answer 5. No, charges received @7% of the sale value of birds of VRBFL and Venco for the laboratory testing and analysis services provided by VHPL would not be exempt from the levy of GST as per entry number 54 of notification number 12/2017-Central Tax (Rate) dated 28 June 2017, as agricultural extension services.