# GST rate clarifications on cattle feed may lead to disputes

> India's finance ministry clarified that DDGS used in cattle feed will attract a 5% GST rate because it is classified as a residue. Industry argues cattle feed under HSN 2309 should be untaxed, which could lead to disputes. The clarification follows a GST Council decision.

- Date: 2021-11-01 · published 2021-11-01T12:00:00.000Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/44677-gst-rate-clarifications-on-cattle-feed-may-lead-to-disputes
- Commodities: [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

A 5% tax on DDGS raises the landed cost of the feed in India, which could slightly reduce its use in cattle rations. Any dispute outcome would affect local feed pricing.

## Read by commodity

- DDGS: bearish ▼

## Sources

- business-standard.com: https://www.business-standard.com/article/economy-policy/gst-rate-clarifications-on-cattle-feed-may-lead-to-disputes-121100800009_1.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.