Mumbai, 10 Aug (Commoditiescontrol): Members of the Maharashtra Dall Millers Association have sought clarification on cattle feed product sourced from milling of dall/pulses that are now subject to goods and services tax (GST). As per the latest notification products extracted from milling of dal/pulses such as chilka, khanda and churi (Chunni) are subject to GST of 5%.
The imposition of GST on cattle feed ingredient has created confusion in the trade/industry and, hence, require more clarity on the issue.
Dal Millers association has noted that cattle feed products sourced from dal/pulses are given directly to cattle without any further process by cattle owners (farmers) and by shelter homes for cattle.
In a letter to the tax authority, the association underlined the fact that millers don't carryout any additional process. The compounded cattle feed processing of customizing the colour, size, aroma, nutrition, purity, etc. are done by separate industry and not by dal millers. The raw extract after dal milling is processed by other industry, hence it is not correct to say that millers undertake value addition.
The millers association has also pointed out that as per the initial intent of law the subject goods i.e. Husk of pulses was exempt from GST imposition.
The millers body has requested to issue direction in this regard, so as to avoid future disputes when sale of by-products of milling of dal/pulses such as chilka, khanda and churi is for direct cattle feed consumption, which is exempt under GST. It suggested of using disclaimer in bill of supply and packing as 'Only for Direct Cattle Consumption'. Also, creating an alternate HSN code will surely solve the problem.
(By Commoditiescontrol Bureau: +91-22-40015505)
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