Animal feed supplied for cattle, poultry and aquatic farming is generally exempt from GST, while certain feed additives and supplements can attract GST at applicable rates. Check your eligibility with Bajaj Finance and explore financing options for feed manufacturing, distribution or agricultural businesses.
In summary
- GST on animal feed in India is largely exempt when it relates to cattle feed, poultry feed, aquatic feed, grass, hay and similar feed products used in animal husbandry.
- The applicable tax treatment depends on product classification under the Goods and Services Tax framework, making correct HSN classification important for manufacturers and suppliers.
- Most animal feed products attract a 0% GST rate, while feed supplements, additives and certain specialised nutritional products may attract GST at applicable rates.
- Feed manufacturers must evaluate the GST treatment of raw materials, input services and finished products to understand their tax liability and input credit position.
- Businesses involved in livestock, poultry and aquaculture sectors benefit from GST exemptions that help reduce the overall cost of feed.
- This page covers what is GST on animal feed, HSN classification, GST exemptions, feed supplements, raw material taxation, industry impact and comparisons with pet food taxation.
What is the GST on animal feed?
GST on animal feed refers to the tax treatment applicable to feed products supplied for livestock, poultry and aquatic animals under India's Goods and Services Tax system. Most animal feed products are exempt from GST to support the agriculture and allied sectors.
Under GST, products such as cattle feed, poultry feed, shrimp feed, fish feed, grass, hay and straw generally fall under the exemption category. However, feed additives, supplements and specialised nutritional products may attract GST depending on their classification.
HSN code for animal feed under GST
The HSN code system classifies animal feed products for GST purposes and determines the applicable tax treatment.
| Animal feed product | HSN code | GST treatment |
|---|---|---|
| Cattle feed | 2309 | Exempt |
| Poultry feed | 2309 | Exempt |
| Aquatic feed | 2309 | Exempt |
| Shrimp feed | 2309 | Exempt |
| Fish feed | 2309 | Exempt |
| Feed supplements and additives | Varies by classification | Taxable at applicable rate |
Correct HSN classification is essential because similar products can attract different GST treatment based on composition and intended use.
GST rate on animal feed: exemption explained
The applicable GST rate for most animal feed products is 0% due to exemption provisions.
| Product category | GST rate |
|---|---|
| Cattle feed | 0% |
| Poultry feed | 0% |
| Fish feed | 0% |
| Shrimp feed | 0% |
| Grass and hay | 0% |
| Feed supplements | Applicable taxable rate |
| Feed additives | Applicable taxable rate |
The exemption aims to support farmers and livestock businesses by reducing production costs.
GST exemption on cattle, poultry and aquatic feed
The GST exemption on animal feed covers a broad range of products used in agriculture and animal husbandry.
- Cattle feed supplied for dairy and livestock farming is exempt from GST.
- Poultry feed used by commercial and small-scale poultry farms is exempt.
- Fish feed and shrimp feed supplied for aquaculture activities are exempt.
- Grass, hay and straw supplied as animal feed are exempt.
- The exemption reduces input costs for farmers engaged in livestock and fisheries activities.
GST on animal feed supplements and additives
Feed supplements and additives do not always qualify for the exemption available to conventional animal feed products.
- Vitamin supplements designed for animal nutrition can attract GST depending on classification.
- Mineral mixtures may be taxable if not specifically covered under exempt feed categories.
- Growth promoters and specialised nutritional formulations often attract GST.
- Product composition and intended usage determine the applicable tax treatment.
- Manufacturers should review product specifications before determining GST liability.
GST on raw materials used in animal feed
Although finished animal feed products are often exempt, raw materials used in manufacturing may attract GST.
- Oil cakes used in feed production may attract GST depending on classification.
- Vitamins, minerals and additives generally attract GST at applicable rates.
- Packaging materials used for feed products are taxable.
- Transportation and logistics services may attract GST.
- Manufacturers must evaluate the impact of input taxes on overall production costs.
Impact of GST exemption on feed manufacturers
GST exemption creates both benefits and challenges for feed manufacturers.
- Exemption lowers the cost of feed supplied to farmers and livestock businesses.
- Manufacturers supplying exempt products generally cannot utilise input tax credits against exempt output supplies.
- Input taxes paid on raw materials and services can become part of production costs.
- Smaller manufacturers benefit from reduced compliance burden on exempt supplies.
- Businesses must maintain proper records to distinguish exempt and taxable products.
GST on animal feed vs pet food
Animal feed and pet food are treated differently under GST because their end use differs significantly.
| Particulars | Animal feed | Pet food |
|---|---|---|
| Primary use | Livestock, poultry and aquaculture | Domestic pets |
| GST treatment | Generally exempt | Taxable |
| Agricultural support objective | Yes | No |
| Common HSN classification | HSN 2309 | Applicable product-specific classification |
| End users | Farmers and commercial producers | Pet owners |
Businesses must carefully distinguish between livestock feed and pet food to ensure accurate GST compliance.
How does GST on animal feed affect agricultural businesses?
GST exemption on animal feed plays an important role in supporting agriculture and allied sectors.
Businesses involved in dairy farming, poultry farming and aquaculture benefit from lower feed costs because exempt supplies do not carry GST. This helps improve operational efficiency and supports affordable food production.
Manufacturers looking to expand production capacity, modernise facilities or strengthen working capital can explore business loans from Bajaj Finance. Before applying, businesses can review the applicable business loan interest rate and estimate repayments using the business loan EMI calculator.
