gst on eggs transportation: Eggs are agri produce or not AAR clarifies:

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gst on eggs transportation: Eggs are agri produce or not AAR clarifies:


  • GST AAR said that egg is an agri product
  • GST will not be levied on its transportation
  • SAS Cargo had appealed in AAR

New Delhi
First came the chicken or the egg! There is no end to this debate. But the Karnataka Bench of the GST Authority for Advance Rulings (AAR) has put an end to the debate whether egg is an agri product or not. AAR said that egg is an agri product and its transportation will not attract Goods and Services Tax (GST).

SAS Cargo, a company that delivered consignments across the country by taking railway containers on lease, had appealed in AAR. The company wanted clarity on whether the transportation of eggs would attract GST. AAR said that egg is an agri product as per notification dated June 18, 2017. Therefore, there will be no GST on its transportation.

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According to this notification, agri product means such produce which is obtained from agriculture or animal husbandry. This includes products such as food, fiber, raw materials and the like. It does not include keeping horses. The notification also states that such items should not be processed further. If the farmer or producer does any kind of processing on it, then it should not change the original form of the product.
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The AAR also sought the opinion of the GST commissioner in this regard. He said that the purpose of this notification was to give relief to the farmers so that they can turn to agro-based activities like animal husbandry and sericulture. But operating a hatchery and producing eggs is a commercial activity. But the AAR said that fresh eggs come under the definition of agri product. Therefore, transportation of eggs from one place to another through rail is not covered under GST.

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