GST implication on pulses by-products impacts cattle feed prices

Cattle feed prices in the country have soared due to the levy of 5% GST on some by-products of pulses such as their supplements and husks, prompting millers to request Union finance minister Nirmala Sitharaman to withdraw the tax.
During the milling of pulses, a wide range of by-products such as chilka, khanda, and churi are obtained. These by-products, after varying degrees of processing, are used as cattle feed by the dairy industry for better palatability and higher nutritive value.
Prices of these cattle feed ingredients have increased sharply since the introduction of GST on them early last month.
Representatives of All India Dal Mill Association have met the finance minister, urging her to scrap the tax. “As the by-products of pulses are used by livestock farmers of the country, we have requested her to reconsider the imposition of a levy of 5% GST,” said Suresh Agrawal, president of the association. “The minister has assured us that she will look into the matter,” he added. The 5% GST is applicable on bran, sharps, and other residues, whether or not in the form of pellets, derived from the sifting, milling, or another working of cereals or of leguminous plants, as per a government circular issued on August 3.
Source: Economic Times of India