QUESTION
 



ANSWER
Facts of the case:
 Applicability of GST on rental income of Poultry farm and on job work for manufacturing of poultry feed.


Law Applicable:
Notification No. 11/2017 Central tax (rate)

24. Heading 9986 (Support services to agriculture, hunting, forestry, fishing, mining and utilities)

 

 

(i) Support services to agriculture, forestry, fishing, animal husbandry.
Explanation. ' "Support services to agriculture, forestry, fishing, animal husbandry" mean -     (i) Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fiber, fuel, raw material or other similar products or agricultural produce by way of'

       (a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing;

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       (d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;

        (e) loading, unloading, packing, storage or warehousing of agricultural produce;

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   (ii) Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables.

   (iii) Carrying out an intermediate production process as job work in relation to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce

    



Interpretation: 1. Support services relating to agriculture, hunting, forestry, fishing, mining and utilities like cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce are exempt vide s.no. 24 of  Notification No. 11/2017 Central tax (rate).

Further renting or leasing of agro machinery or vacant land with or without a structure incidental to its use is also exempt.

Hence renting of Poultry shed is exempt vide Notification no. 11/2017 Central tax (rate).

2. Carrying out an intermediate production process as job work in relation to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce is exempt vide s. no. 24 of  Notification No. 11/2017 Central tax (rate).

However the activity of manufacturing of Cattle Feed / Poultry Feed on job work basis is not “Support services to agriculture, forestry, fishing, animal husbandry” and not covered under above exemption hence classifiable under heading 9988 and taxable @5%.

The same view is given by the Punjab Authority of Advance Ruling in case of Gupta Steel Udyog. The same is enclosed for your reference.

Conclusion:  Rental income from Poultry farm is exempt under GST and job work charges for manufacturing of poultry feed are taxable @5%. (Reply dt.21.09.2020)