Classification of goods— In the instant case, the appellant had sought an Advance Ruling on classification and applicability of GST rate on the 'Rejected Wheat Seed' and ‘Rejected Paddy Seed'.

AAR held that 'rejected wheat seeds' and 'rejected paddy seeds' fall under Chapter sub-headings 1001 and 1006 respectively. In fact there are specific entries in the tariff. Chapter sub heading 1001 11 00 covers seeds of Durum wheat while 1001 91 00 covers seeds of other varieties of wheat. Similarly, Chapter sub heading 1006 10 10 covers paddy (rice) of seed quality.

However, we find that 'NIL' rate of GST is applicable on these goods. If the rejected seeds are put up in a unit container and bearing a registered brand name or bearing a brand name on which an actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, then the effective CGST & SGST rate on both will be 2.5% & 2.5%.

Held that— 

1. Rejected wheat seeds are classified under Chapter sub heading 1001 11 00 (Durum) and 1001 91 00 (Others) of the GST Tariff 2017.

2. Rejected paddy seeds are classified under 1006 10 10 of the GST Tariff 2017.

3. The applicable CGST & SGST rate on both the above goods is “NIL”. However if the rejected seeds are put up in a unit containers and bearing a registered brand name or a brand name on which an actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, then the effective CGOST & SGST rate on both will be 2.5% & 2.5.