Page 159 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : MUKTHENAHALLY SHIVAKUMAR CHANNABASAVAIAH 405
4.1 The applicant states that while making poha bran, the paddy is
soaked in water to the extent of twenty four hours and subjected to roasting pro-
cess followed by paddy hulling process and afterwards three by-products are
available such as Avalakki (Poha) and Mandakki (Puffed rice) and Poha Bran
(husk).
5. The composition of the Poha bran contains oil to the extent of 3 to 4%
and fibre to the extent of 35% the same is used as ingredient for manufacturing of
cattle feed or poultry feed is being exempted from payment of taxes. The said
product is partly oil bran and partly de-oiled bran presently classifying under
HSN Code 2304 at the rate of 5 per cent. Others are of the opinion that the said
goods being exempted from the payment of taxes. Hence the applicant is under
dilemma and wants to know the right classification of the said goods and tax rate
or exempted?
6. Findings & Discussion :
6.1 We have considered the submissions made by the Applicant in their
application for advance ruling as well as the submissions made by Sri. Shiva
Kumar M.C, Proprietor appeared during the personal hearing. We have also con-
sidered the issues involved, on which advance ruling is sought by the applicant,
and relevant facts.
6.2 At the outset, we would like to state that the provisions of both the
Central Goods and Services Tax Act, 2017 and the Karnataka Goods and Services
Tax Act, 2017 are the same except for certain provisions. Therefore, unless a men-
tion is specifically made to such dissimilar provisions, a reference to the CGST
Act would also mean a reference to the corresponding similar provisions under
the KGST Act.
6.3 The said poha bran is nothing but rice bran and is by-product of
Poha or Avalakki manufacturing process from paddy. Both rice bran and poha
bran are derived from Paddy and the constituents of both are same. They are
given different commercial names due to the different process of manufacture
which give rise to them. Both are used as ingredient for manufacturing of cattle
feed. The composition of the poha bran contains oil to the extent of 3 to 4% and
fibre to the extent of 35%. Hence poha bran is nothing but Rice bran.
6.4 As for as classification of Poha bran is concerned the said goods can
be classified under HSN chapter/heading vide HSN 2302 40 00. The present clas-
sification applied by the applicant for Poha bran under HSN 2304 00 90 is incor-
rect as it is applicable to those from soyabean.
6.5 Regarding the taxability, The poha bran, which is same as Rice bran
as discussed above, is covered under Entry No. 103B of Schedule-I of Notification
No. 1/2017-Central Tax (Rate), dated 28-6-2017 as amended by Notification No.
6/2018-Central Tax (Rate), dated 25-1-2018 and the same is liable to tax at 2.5%
from 25-1-2018 under the CGST Act. Similarly the same is also liable to tax at
2.5% under the KGST Act, 2017 from 25-1-2018.
RULING
7. The Poha bran is classified under HSN 2302 40 90 and attracts tax at
the rate of 2.5% each under CGST and SGST Act.

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GST LAW TIMES  21st May 2020  159