Telangana’s Appellate Authority for Advance Ruling has upheld that chemically processed seed is not an agricultural produce and hence, activities related with it will not get the exemption from Goods & Services Tax (GST).
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The appellant in this matter is Hyderabad-based Ganga Kaveri Seeds Private Limited. It is in the business of production and sale of agricultural seeds. In the process of production, it outsources certain services such as cleaning, drying, grading and packing to the workers and stores the seeds in various facilities after processing them.
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