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Eggs are farm produce, transporting them is exempt from GST: Karnataka AAR

Eggs are farm produce, transporting them is exempt from GST: Karnataka AAR

The authority of advance ruling (AAR), Karnataka has ruled that eggs are agricultural produce and transporting them from one place to another would not draw any goods and services tax (GST), despite the tax authorities arguing for its taxability.

The ruling was pronounced on an application submitted by SAS Cargo, which is engaged in the business of transportation of eggs and hatcheries by rail.


The AAR sought to know the government's position from the office of the commissioner of central tax, Bengaluru South gst commissionerate, Bengaluru.

The assistant commissioner replied that according to the GST laws, agricultural produce is any produce out of cultivation of plants and rearing of all forms of animals, except the rearing of horses, on which either no processing is done or such processing is done which does not alter its essential characteristics.

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