GST Rate and HSN Classification for Chicken Intestine Waste
- Ruling
- TSAAR Order No. 9/2018, dated 20-07-2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
In short
The company asked the Telangana Authority for Advance Ruling (AAR) to clarify the Goods and Services Tax (GST) classification for processed chicken intestine waste. They needed to know if this waste, used for animal feed, falls under a specific Harmonized System of Nomenclature (HSN) code to determine the correct tax rate.
What has changed
How it worked before
Businesses in the animal feed supply chain often faced uncertainty regarding how to classify biological waste products under the GST tariff. Without a clear precedent, many were unsure if such waste should be taxed at a general rate or a specific category rate.
What has changed
The authority ruled that processed chicken intestine waste falls under HSN heading 0505, which carries a total GST rate of 5%. This means businesses processing this waste can now apply a 2.5% Central GST and 2.5% State GST rate to their supplies, providing a clear standard for their invoices.
Who this affects
This ruling is relevant for businesses that collect, process, or supply chicken waste and other animal by-products to the pet food or livestock feed industries.
What you should do
You should review your current tax classification against this ruling to ensure your GST filings are consistent with the authority's interpretation. Please remember that an advance ruling is only legally binding on the specific business that requested it and their local tax office, so it does not automatically change the law for your own operations.
The ruling in detail
Authority for Advance Ruling
M/s. Susheela Agrovet
TSAAR Order No. 9/2018, dated 20-07-2018 · Telangana
Questions before the authority
- What is the HSN Code applicable for chicken intestine waste?
- What is the rate of tax applicable for chicken intestine waste?
Facts
The applicant collects chicken intestine waste from various shops and processes it by washing with hypochloride. This processed waste is supplied to pet food and animal food industries as an intermediate product for the manufacture of poultry and animal feed. The applicant sought an advance ruling to determine the correct HSN classification and the applicable GST rate for this product.
Ruling
| Question | What the authority ruled |
|---|---|
| HSN Code | 0505 Classified as skins and other parts of birds |
| Tax Rate | 5% total (2.5% CGST + 2.5% SGST) Applicable to chicken intestine waste |
The authority ruled that chicken intestine waste is classifiable under HSN heading 0505. Consequently, the applicable rate of tax is 2.5% CGST and 2.5% SGST.
Reasoning
The authority examined the scope of heading 0505, which covers skins and other parts of birds, including waste of feathers or parts of feathers that are cleaned or disinfected. By applying the rules for interpretation of the Customs Tariff Act, 1975, which are made applicable to the GST Tariff, the authority concluded that chicken intestine waste falls under this heading. The ruling was issued under the provisions of the CGST/TGST Act, 2017.
Provisions relied on
- Section 96(1) of TGST Act, 2017
- Section 97(1) of TGST Act, 2017
- Section 100(1) of CGST/TGST Act, 2017
- Rule 103 of CGST/TGST Rules
- Customs Tariff Act, 1975
For the practitioner
This ruling provides clarity for businesses involved in the processing and supply of chicken waste for animal feed. It confirms that such waste is **classifiable under HSN 0505** and subject to a **5% total GST rate**. Practitioners should note that this classification relies on the interpretation of the Customs Tariff Act as applied to GST, which may be subject to future legislative or judicial review.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/tsaar_09.2018_20.07.18.pdf
Legibility of the scan, as read: high.
Prepared 21-10-2026.
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