GST
TRT-2025-
AAR Uttar Pradesh
Date:-27-03-23
In:-
Issue Favourable to Tax Payer ?:-
Key Pointers:
- The applicant, M/s Gobind Sugar Mills Ltd, is a manufacturer of sugar, molasses, and ethanol. The applicant pays GST at a rate of 5% on sugar and 28% on molasses.
- The company wishes to sell sugarcane juice to a distillery within the state where they will produce ethanol.
- The applicant seeks clarification on classification and rate of sugarcane juice.
- The AAR found that sugarcane juice does not qualify as agricultural produce as it is not produced by farmers and does not fulfill all the conditions required for agricultural produce.
- It was held that sugarcane is neither a fruit nor a vegetable, and as per the GST tariff, it falls under the category of "others" (HSN - 20098990), taxable @12%.
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