11 March 2022 4:00 PM GMT
The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Mangoo and T.R. Ramnani has ruled that Goods and Service Tax (GST) at the rate of 18% is applicable on poultry crates, which can be treated as "articles for the conveyance or packing of goods, or plastics".The applicant is in the business of manufacturing a wide range of products used for storage,...
The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Mangoo and T.R. Ramnani has ruled that Goods and Service Tax (GST) at the rate of 18% is applicable on poultry crates, which can be treated as "articles for the conveyance or packing of goods, or plastics".
The applicant is in the business of manufacturing a wide range of products used for storage, handling, and transportation of goods, including products like plastic crates, poultry crates, plastic pallets, insulated ice boxes, and fish tubs, waste management tools, road safety products, hospitality solutions, aquaculture fish cages, manhole chambers, ripening solutions, material handling equipment, and metal shelving and racking systems.
The poultry crate has been used for the transportation of live birds from farm to processing plant. The industry has faced several challenges as birds have to be gathered, loaded, transported and unloaded into a completely new environment. Some of the challenges include harvesting the birds, feed withdrawals, and temperature variation during transport. If quality control in transportation is poor, it will result in decreased meat quality.
The concept of poultry crates came into existence after looking into the safety, lowering mental stress, reducing human contact and hygiene of birds transported into them. The crates are made from hygienic food grade HDPE material, which is rust-free and safe for usage. The smoother inner surface and scientific design make the crate injury-free and can be easily cleaned and washed. During vehicle-breakdown, crates can be easily shifted to another vehicle without harming the chicks inside, and any normal vehicle can be used to load Nilkamal Poultry Crates. The crates have a smart locking system that helps to prevent birds from coming out, thus saving loss of life during transportation.
The applicant has sought an advance ruling on the issue of whether the product poultry crate falls under chapter 84, chapter heading 8436, sub heading 843610, and Tariff item 84362900 as poultry keeping machinery, attracting a tax rate of 6% under Central and State Tax.
The AAR has noted that poultry crates are made of plastic and they are seen to be classifiable exclusively under Chapter 39231090.
Applicant's Name: Nilkamal Limited
Citation: GST-ARA- 49/2020-21/B-29
Click Here To Read/Download Order