Update on applicability of GST on Seed certification tags

Update on applicability of GST on Seed certification tags
Circular No 100/19/2019-GST dated 30^th April 2019 has been issued wherein the applicability of GST on Seed certification tags has been classified. In this circular the process involved in the process of seed certification has been explained in detail. This has been taken in reference from the state of Tamil Nadu. The following are the steps involved in the process of applying Seed certification tags.
1. Application for seed production
2. Registration of sowing report
3. Field inspection
4. Seed processing
5. Seed sample and seed analysis
6. Tagging and sealing
The above stages have been explained in the circular and during the processing fees is to be paid at different stages to the authorities concerned. Then in the final stage of “Tagging and Sealing”, approved seed lots are to be tagged with certification tag within two months from the date of the receipt of seed analysis report or within 30 days from the date of genetic purity test performed. On receipt of the seed tags, it is verified by the Seed Certification Officer. All the prescribed details are entered in the tag. The green colour (10 – 15 cm size) producer tag should also be attached to the seed lot along with the certification tag. All the tagging operations should be done in the presence of the Seed Certification Officer. If tagging has not been done within the specific time limit, confirmation samples can be taken with prior permission from the Assistant Director of Seed Certification. The fee for the delayed tagging is Rs. 50/- (Rupees fifty only) and seed analysis fee of Rs. 30/- (Rupees thirty only) has to be paid in such cases. In this stage the process of seed certification in the state of Uttarakhand is also explained.
The board vide this circular has clarified that charges for issue of seed certificates/tags by the Seed Certification Agency for the composite supply of seed testing and certification, which is exempt under Notification No. 12/2017-Central Tax (Rate). This clarification would apply to supply of seed tags by seed testing and certification agencies of other states also following similar seed testing and certification procedure. The relevant entry of the aforementioned notification is reproduced as follows:

Heading 9983 or Heading 9991

Services provided by the Central Government, State Government, Union territory or local authority by way of- (a) registration required under any law for the time being in force; (b) testing, calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, including fire license, required under any law for the time being in force.

Nil

However, the State Governments/Seed Certification Agencies may get the tags used in seed certification printed from other departments/ manufacturers outside. Supply of seed tags by the other departments/manufacturers to the State Government/Seed Certification Agencies is a supply of goods liable to tax. Whether such tags would be classified under Chapter 49 as tags made of paper or in Textile chapters as tags made of textile would depend upon the predominant material used in the tags.
This is solely for the educational purpose.
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Update on applicability of GST on Seed certification tags

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