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Clarification on seed quality/ no seed quality

This query is : Resolved 

03 May 2019 I want to know the clarity of the concept specified as seed quality in HSN and other than seed quality. what is the exact difference? and I want to know it in regards with Tamarind kernel

03 May 2019 Seed quality means products which is usually perceived, used, sold as seed in the ordinary trade parlance. Normally seeds attract nil GST.

03 May 2019 Is it irrespective of the purpose for which the seeds are used? Even if the seeds are not used for sowing purpose still they ll be taxed at nil rate?


03 May 2019 No. It depends upon various factors. Like packing- is it being packed as food items or as seeds. From where it is being sold- from a grocer or from a seed shop. We know the difference between seeds and food items; and there are enough evidence to prove it. The issue needs to be determined at the time of supply- what is being supplied- food item or seeds.
If the product is supplied as seeds, and later not used as seeds by the customer- it is irrelevant for the purposes of GST.

03 May 2019 So in short suppose I am a seller selling seeds where I know they are going to be used in further processing then I have to tax it

04 May 2019 Actual use is not relevant. The is the purpose for which it is being sold by the supplier.

04 May 2019 Okay. Thankyou for the clarity sir.

27 June 2019 Seed quality does not necessarily mean its ability to germinate. This can be inferred from the term broken or not. Normally most seeds lose its ability to germinate when broken.




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