January 5, 1995
11845-2
CN 972
XXXXX
I am responding to your E-mail message dated November 25, 1994, sent to Pamela Lafrance, requesting clarification of the application of GST to bale processors.
The application of the GST to bale processors has been re-examined and it has been determined that they do not fall within the Agriculture and Fishing Property (GST) Regulations.
The provision in the Regulations is not a general equipment provision but is very specific in what is zero-rated. It zero-rates feed grinders. Since bale processors shred hay they are not be considered feed grinders. Grinding and shredding are distinct functions and produce different end products. Consequently, the letter dated February 8, 1994, regarding the application of GST to the XXXXX provided an incorrect result. The supply of the XXXXX is taxable at 7%.
Additional information may be obtained from Pamela Lafrance, Tax Policy Officer at (613) 957-9152.
Yours truly,
Enikö Vermes
A/Manager
Goods and Health Care Services
GST Policy and Legislation.
| c.c.: |
District I & S Manager
XXXXX
P. Lafrance |
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