Cotton Seed Oil Cake Supply for Cattle Feed Exempted from GST: Gujarat High Court

The Gujarat High Court ruled that the supply of cotton seed oil cake for cattle feed is exempt from Goods and Services Tax (GST) as per Notification No. 2 of 2017. The court emphasized that the tax authorities failed to demonstrate that the cotton seed oil cake was not used for cattle feed, and thus the end use of the product should not affect its classification for tax purposes. The petitioner, M/s Dharti Enterprises, argued that the product is exclusively used as cattle feed and should be exempt from GST. The court agreed, stating that the exemption applies retrospectively from the date GST was implemented. This ruling provides clarity on the tax treatment of cotton seed oil cake and reinforces the principle that the end use of a product should not impact its tax classification. The decision is expected to benefit businesses involved in the production and supply of cattle feed.