The Telangana Authority of Advance Ruling (AAR) vide its Order No.14/2022 dated 14th March, 2022 has ruled that 5% Goods and Service Tax (GST) is payable on distillery wet/dry grain soluble which is sold as cattle feed.
The AAR has observed that the Notification No. 01/2017 classifies ‘brewing or distillery dregs and waste’ at S.No.104 under tariff item ‘2303’ and the GST rate applicable is 5% on these products. The Authority ruled that the chapter headings of the tariff items which qualify as cattle feed at the S.No.102 of Notification No. 02/2017 do not include the HSN ‘2303’. Thus S.No.102 of Notification No. 02/2017 specifically excludes ‘brewing or distillery dregs and waste’. The DWGS and DDGS clearly falls under ‘brewing or distillery dregs and waste’ and therefore under tariff item HSN No. ‘2303’. Hence these are excluded from the exemption Notification No. 02/2017.