Rice unfit for human consumption and used for other purposes would not be exempt from the Goods and Services Tax (GST), the Chhattisgarh authority for advance rulings (AAR) has ruled.

The farm produce would attract 5 per cent GST, said AAR. Shraddha Traders, which runs a rice mill, sought a ruling from the AAR on paddy rice unfit for human consumption and used in industries, manure production and cattle feed.

Tax rates under GST are based on their classification under the harmonised system of nomenclature (HSN). The AAR said the farm produces merits classification under 100610 which attract five per cent GST.

However, the authority could not find an adequate GST rate for this rice on the basis of its final product such as industrial, manure or cattle feed as the applicant had not given details of the procedures.

Source: Business Standard 
https://www.business-standard.com/article/economy-policy/rice-unfit-for-humans-and-used-for-other-purposes-to-attract-5-gst-aar-122122300413_1.html