September 7, 1995
11845-2(MB)
Doc: 2432G
Ref: Ss 1(4) of Agri & Fish Regs.
Dear XXXXX
Thank you for your letter and attached information dated August 28, 1995, requesting a written ruling regarding the application of the Goods and Services Tax (GST) to a supply of the pesticide XXXXX In order for the supply of a pesticide to be zero-rated in accordance with subsection 1(4) of the Schedule to the Agriculture and Fishing Property (GST) Regulations (Regulations), it must be labelled in accordance with the Pest Control Products Regulations as having a purpose that includes agricultural use and having a product class designation other than "domestic".
Prior to March 11, 1992, supplies of these pesticides, where the total consideration paid or payable on a single invoice was at least $500.00, were zero-rated. On March 10, 1992, the Minister of Finance announced a change to the Regulations as they apply to supplies of pesticides. Where supplies are delivered after March 10, 1992, the $500.00 criteria no longer applies. Supplies of qualifying pesticides are zero-rated after March 10, 1992 when supplied for any amount of consideration.
Based on the label information provided, XXXXX has a class designation of "Commercial" or "Agricultural" and is labelled in accordance with the Pest Control Products Regulations. XXXXX is a rodenticide for the control of rats and mice in areas which include commercial, manufacturing, industrial premises, farm buildings, storage areas and garbage dumps where there are no feeds, foods, or packaging materials.
XXXXX which can be used in farm buildings and storage areas, has a purpose that includes an agricultural use. As all conditions identified in the Regulations are met, a supply of XXXXX is zero-rated for GST purposes.
This ruling is given subject to the general limitations and qualifications outlined in GST Memoranda Series 1.4. We are bound by this ruling provided that none of the above issues are presently under audit, objection or appeal, there are no relevant changes in the future to the Excise Tax Act and provided that you have fully described all necessary facts and transactions for which you requested a ruling.
We trust that the above information will be of assistance. If you have further questions on this matter, please contact Michèle Brûlé at (613) 952-9208.
Yours truly
J.A. Venne
Director
Special Sectors
GST Rulings and Interpretations
c.c.: Enikö Vermes
Michèle Brûlé
XXXXX XXXXX
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