Fact: M/s. Agarwal Industries Private Limited is engaged in manufacturing of ingredients of poultry feed, particularly involved in manufacturing of substitute of rice bran oil, which is used in preparation of poultry feed. The new product is named as ‘Energy-G premium oil’ and stated that the product is inedible or not fit for human consumption and purely for manufacturing of poultry feed.
Issue Involved: What will be the HSN code for “Energy-G premium oil”?
Held: The Hon’ble AAR of Andhra Pradesh vide advance ruling no. AAR/AP/5(GST)/2018 dated June 8, 2018 stated that the product under question is manufactured out of Vegetable fats/oils and not from animal fats/oils. That being so the classification of “Energy-G premium Oil” falls under the “HSN Code: 1518” i.e. vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurated, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516″ and shall be subject to 5% GST as per serial no. 90 of Schedule I of Notification No. 1/2017-C.T. (Rate), dated June 28, 2017 and corresponding SGST Notification.
Therefore, the correct HSN Code of “Energy-G premium Oil” is HSN 1518 vide S. No. 90 of, Schedule I of Notification No. 1/2017-C.T. (Rate), dated June 28, 2017 and hence the rate of tax attracts 5%.