Animal health industry manufactures feed supplements to optimize the nutritional value of animal feeds and support animal productivity. Feed supplement/ Feed additive products are currently exempted from Central Excise Duty and also VAT across majority of states in India. However, now with a view to simplify and integrate the current diverse indirect tax structure in India, the government of India seeks to introduce 'Goods & Service Tax' (GST). Under GST regimen certain essential goods and services are proposed to be exempted from levy of GST. Therefore, INFAH wishes to extend the currently available Indirect Tax exemption on Feed Supplement in the GST regimen as well. To realize this INFAH has appointed KPMG for representation before various stakeholders with a view to cover animal feed supplements in the list of 'exempted goods'. Following work has been done in this direction until March' 2016.
A representation document on behalf of INFAH has been prepared which has been reviewed and validated by the managing committee.
Representation has been already submitted to Empowered Committee of State Finance with copies to Ministry of Finance (Joint Sec. Revenue) and Department of Animal Husbandry, Dairy and Fisheries (Secretary). We have accordingly represented to the Empowered Committee of State Finance Ministers that animal feed supplements should continue to be categorically exempt from GST even under the proposed GST regime so as to avoid any negative impact of additional tax burden on feed supplements which are an essential ingredient of animal feeds.
Followup Meetings: A meeting with key officials in Department of Animal Husbandry, Dairying & Fisheries (Animal Health Commissioner, Secretary and Joint Secretary) was undertaken to solicit action on the INFAH representation for GST. INFAH team comprising of Dr. Atrey, Mr. Teng, Dr. Phalke and KPMG representative Mr. Dalvi met all key officials.
In coming days a similar meeting with Central Board of Excise & Custom and Ministry of Finance is planned by KPMG to further take this representation and try to convince these authorities considering inclusion of feed supplement in the list of products exempted from levy of GST.
