Sunday, May 5, 2019

No GST on Seed Certification Tags : Circular 100/19/2019

No GST on Seed Certification Tagging: GST Circular

The process of seed testing and certification followed in the state of Tamil Nadu, as prescribed in the Seeds Act, 1966 and elaborated in the Manual on Seed Production and Certification, published by Centre for Indian Knowledge Systems, Chennai, involves the following steps: 

a. Application for seed production
b. Registration of sowing report
c. Field inspection 
d. Seed processing
e. Seed sample and seed analysis
f. Tagging and sealing

At the end of the process, approved seed lots are tagged with certification tag. The entire process is carried out by statutory bodies for some consideration. e.g. Rs. 30 to 100 for each stage. There was a dilemma about GST Applicability on tagging charges.

Circular 100/19/2019 clarifies that All the above charges, including those for issue of seed certificates/tags by the Seed Certification Agency of Tamil Nadu and Uttarakhand to the seed producing organization/ companies are collected for the composite supply of seed testing and certification, which is exempt under Notification No. 12/2017-Central Tax (Rate) Sl. No. 47 (services by Central/State Governments by way of testing/certification relating to the safety of consumers and public at large, required under any law). This clarification would apply to the supply of seed tags by seed testing and certification agencies of other states also following similar seed testing and certification procedure.



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