Authority for Advance Ruling — Rate of GST on supplies of Cotton Seeds “Banaula”  – The applicant engaged in the business of receiving Cotton Seeds “Banaula” after being transported by Goods Transport Agencies (GTA) which is classifiable with Chapter Heading 9965/9967, in respect of said service is payable by the recipient under RCM. The applicant sought an advance ruling as to whether Cotton Seeds “Banaula” included in the list of agricultural produce for exemption in GTA service under Notification No.12/2017 dated 28th June, 2017 (Tariff heading 9965/9967)’ if not, what is the tax rate applicable for GTA services in respect of Cotton seeds. The Authority observed that requisite fee for filling Advance Ruling application is Rs. 10,000/- (Rs. 5,000 each for CGST and SGST), but the applicant has deposited only Rs. 5,000/- under SGST Act. Despite giving multiple opportunities, the applicant has not deposited the required pending fee of Rs. 5,000 under GCST Act.

Held that:- The Hon’ble Authority for Advance Ruling ruled that Cotton Seed (Banaula) is not eligible for exemption from payment of GST on GTA services as per Notification No. 12/2017-Central Tax (Rate) dt. 28.06.2017(Tariff heading 9965/9967). GST chargeable is 5% (2.5% CGST and 2.5% SGST) on GTA services availed by the applicant for transporting Cotton Seed (Banaula), provided that credit of input tax charged on goods and services used in supplying the service has not been taken, else @6%, under Sr. No. 9 of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017.