GST Exemptions on Animal and Aquatic Feed: Key Changes in Notification No. 13/2022

Simplified Explanation of Notification No. 13/2022-Central Tax (Rate)

Purpose: This notification updates the list of exempt goods under the Central Goods and Services Tax (CGST) Act, 2017, specifically concerning agricultural and animal feed products.

Key Points:

1. Update to Aquatic and Animal Feed Exemption:
   • Before January 1, 2023:
     • The exemption list under S. No. 102 covered various types of feed but did not specify details for some categories.
   • After January 1, 2023:
     • The updated entry for S. No. 102 includes:
       • Aquatic Feed: For shrimp and prawn.
       • Poultry Feed: For birds like chickens.
       • Cattle Feed: Includes feed for cows, buffaloes, etc.
       • Other Items: Grass, hay, straw, supplements, additives, wheat bran, and de-oiled cake (excluding rice bran).
2. Addition of New Exempt Goods:
   • New S. No. 102C:
     • Husk of Pulses: Includes by-products from pulses.
     • Concentrates: Such as chuni or churi (by-products of oilseeds).
     • Khanda: A type of by-product used in animal feed.

Effective Date:

• January 1, 2023

What This Means:

• Expanded Feed Exemption:
  • The notification broadens the scope of exempt agricultural and animal feed products, providing clarity on what types of feed are exempt from GST. This helps in reducing the tax burden on essential feeds for various animals.
• New Additions:
  • Husk of Pulses: Typically used as animal feed.
  • Concentrates and Khanda: By-products from oilseeds and pulses, now also exempt.

Example:

Scenario:

• Before January 1, 2023:
  • If you were buying shrimp feed or poultry feed, you would have had to pay GST on these items unless they were clearly specified as exempt.
• After January 1, 2023:
  • If you purchase shrimp feed or poultry feed, these products are now explicitly covered under the exemption. Additionally, if you buy husk of pulses or concentrates (such as churi), these too are exempt from GST, lowering the overall cost for feed suppliers and farmers.