M/S SHUBHLAXMI COLD STORGAE AND ICE FACTORY PRIVATE LIMITED

The Applicant is having a cold storage for storing of agriculture produce out of cultivation of plants and poultry eggs which are produce of rearing of life animals/poultry farming and is paying tax on storage charges of the processed agriculture produce and other products.

The Applicant sought Advance Ruling on "Whether charges received by the cold storage for providing service of storing of eggs, which is produce of rearing of animals/poultry farming in cold storage is exempted from payment of GST in terms of S. no. 24 of Notification No. 11/2017-CT (Rate) and S. no. 54 of Notification no. 12/2017-CT (Rate)?"

 ‘Agriculture produce’ has been defined in clause (d) of pars 2 of Notification No. 12/2017, which is as under:
“(d) ‘agricultural produce’ means any produce out of 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, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market.”

Eggs are produced out of rearing of chicken (Poultry Farming) for food and as per definition of Agricultural Produce, any produce out of rearing of all life forms of animals,export the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market.” Thus Fresh Eggs in shell on which no further processing is done are covered under definition of “agricultural produce.”

CRUX: The charges received by the applicant for providing service of storing of “fresh eggs” in shell on which no further processing is done, which are produce of rearing of animals/poultry farming are covered under definition of “agricultural produce and are exempted from payment of GST in terms of entry No. 24 of Notification No. 11/2017-CT (Rate) and entry S. No. 54 of Notification no. 12/2017-CT (Rate) dated 28.06.2016.