Semen Sorting Services Exempt From GST As Support To Animal Husbandry: Gujarat AAR

The Gujarat Bench of the Authority for Advance Ruling (AAR) on 3 March, held that semen sorting services using specialised technology qualify as support services to animal husbandry and are exempt from Goods and Services Tax (GST).

The Authority Bench comprising Sushma Dora and Vishal Malani decided on an application filed by Jiva Sciences Private Limited, which undertakes separation of X and Y chromosomes from bovine semen using proprietary technology. It ruled:

“'Semen Sorting Services' are exempt from payment from GST” while also adding that “Semen Sorting services are classified under SAC 9986.”

The issue before the Authority was whether these services qualify for exemption similar to semen doses and how they should be classified. Jiva Sciences argued that the activity forms part of animal husbandry and constitutes an intermediate production process linked to rearing of animals.

The Authority observed that the process directly supports breeding and rearing of livestock. It noted that artificial insemination and related processes fall within animal husbandry services, and that semen sorting operates as an intermediate step facilitating such activity.

It rejected the department's contention that the service falls under a residual category of technical services. It held that a specific classification must prevail over a general or residual entry.

Applying the exemption notification granting nil rate to support services relating to cultivation of plants and rearing of animals, including intermediate production processes, the Authority concluded that the services fall within the exempt category.

Accordingly, the AAR held that the service is classifiable under SAC 9986 and is exempt from GST.