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2023 (6) TMI 1050 - AAR - GSTLevy of GST - export of pre-packaged and labelled rice upto 25 Kgs, to foreign buyer - supply of pre-packaged and labelled rice upto 25 Kgs, to exporter on bill to ship to basis i.e., bill to exporter and ship to customs port, exporter ultimately exports the rice to foreign buyer - supply of pre-packaged and labelled rice upto 25 Kgs, to the factory of exporter, exporter will export the rice. HELD THAT - In the instant case, the ultimate buyer is not present and the commodity is being pre-packed for an unknown ultimate buyer. The buyer from the applicant is re-selling the same to another buyer be it export or indigenous. This advance ruling authority agrees with the observation regarding the applicability of GST on pre-packaged and labelled' irrespective of the fact that whether the it is for domestic sale or exported outside the country. GST is leviable on all the above three cases.
Issues Involved:
1. GST applicability on export of pre-packaged and labelled rice up to 25 Kgs to a foreign buyer. 2. GST applicability on supply of pre-packaged and labelled rice up to 25 Kgs to an exporter on a "bill to ship to" basis. 3. GST applicability on supply of pre-packaged and labelled rice up to 25 Kgs to the factory of an exporter. Summary: Issue 1: GST applicability on export of pre-packaged and labelled rice up to 25 Kgs to a foreign buyer. The applicant, engaged in manufacturing and supplying rice, sought clarification on whether GST would be levied on the export of pre-packaged and labelled rice up to 25 Kgs to a foreign buyer. The authority referred to Notification No. 06/2022 (CT Rate) dated 18th July 2022, which mandates GST on "pre-packaged and labelled" commodities as defined in the Legal Metrology Act, 2009. The ruling affirmed that GST is applicable in this scenario. Issue 2: GST applicability on supply of pre-packaged and labelled rice up to 25 Kgs to an exporter on a "bill to ship to" basis. The applicant queried about the GST applicability when supplying pre-packaged and labelled rice up to 25 Kgs to an exporter, who then ships it to a customs port for export. The authority, referencing the same notification and legal provisions, ruled affirmatively, stating that GST is applicable on such supplies. Issue 3: GST applicability on supply of pre-packaged and labelled rice up to 25 Kgs to the factory of an exporter. The applicant also sought clarity on the GST applicability for supplying pre-packaged and labelled rice up to 25 Kgs to an exporter's factory, where the exporter will subsequently export the rice. The authority confirmed that GST is applicable in this case as well, based on the provisions of the same notification and the Legal Metrology Act, 2009. Ruling: The authority ruled affirmatively on all three questions, confirming that GST is leviable on the export and supply of pre-packaged and labelled rice up to 25 Kgs, whether for domestic sale or export.
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