The West Bengal Authority of Advance Ruling (AAR) has held that Cotton seed de-oiled cake (HSN 23061020) is exempt from tax irrespective of its use.
The bench of Shafeeq S and Jaydip Kumar Chakrabarti has observed that from 01.07.2017 to 21.09.2017 cotton seed oil cake is exempt from tax if it is an aquatic, poultry or cattle feed. Otherwise, it is to be taxed @2.5% CGST+2.5% SGST. From 22.09.2017 cotton seed oil cake is exempt from tax irrespective of its use.
The applicant, Gupta Feed Products Private Limited operates in the business of selling items relating to animal feeding as trading activities. The applicant procures cotton seed de-oiled cake (HSN 23061020) which is sold as animal feed to his customers. It has come to his attention that suppliers of this product are adopting varying practices concerning the application of GST rates of tax. Specifically, some suppliers are charging @5% GST on the sale of cotton seed de-oiled cake, while others do not levy any GST and mention the item as cotton seed meal. This inconsistency has led the applicant to the confusion regarding the correct treatment of tax.
The applicant sought the advance ruling on the issue of whether the cotton seed de-oiled cake (HSN 23061020) subject to a 5% GST when used as animal feed.
The AAR held that goods under HSN code 2306 which includes the goods in the present case are covered by serial no. 107 of Schedule I and is taxed @ 2.5% CGST+ 2.5% SGST. However, the bracketed portion (the exclusion clause) of the entry leads us to entry no. 102 of the Exempt Schedule. It is evident from this entry that the goods under HSN 2306 will be exempted when they are used as goods mentioned in serial no. 102.
So during the period 01.07.2017 to 21.09.2017 the taxability of cotton seed oil cake is determined by its usage. If it is aquatic, poultry or cattle feed it is exempt from tax. Otherwise, it is to be taxed under serial no. 107 of Schedule I.
Ruling Details
Applicant’s Name: Gupta Feed Products Private Limited
Ruling Date: 17.10.2025
