2024 (6) TMI 10 - AAR - GST

Levy of GST - export of processed frozen shrimps packed in individual printed pouch / box further packed inside a printed master carton containing the design label and other particulars provided by the buyer - export of processed frozen shrimps packed in individual plain pouch / box further packed inside a plain master carton. Export of processed frozen shrimps in printed pouches/boxes - HELD THAT - In the instant case since the inner packing is printed and is having pre-determined quantity it immediately attains the characteristics of pre-packaged and labelled category meant for retail sale irrespective of the fact whether the outer packaging is printed or not. Under these circumstances the inner packagings which ranges from 250 grams to 2 kilograms becomes liable to GST as the same fall within the ambit of pre-packaged and labelled category which is mandated to bear the declarations under the provisions of the Legal Metrology Act 2009 (1 of 2010) and the rules made thereunder. Export of processed frozen shrimps in plain pouches/boxes - HELD THAT - N/N. 6/2022-Central Tax (Rate) and the parallel IGST Notification No. 6/2022-Integrated Tax (Rate) both dated 13.07.2022 stipulates that tax under GST is applicable on pre-packaged and labelled commodities as per the provisions of Legal Metrology Act 2009 with effect from 18.07.2022 - In the instant case the ultimate buyer is not present when commodity is placed in package and the commodity is being pre-packed for an unknown ultimate buyer. Therefore where the quantity involved is 25Kgs or less in respect of specified commodities including shrimps (HSN 0306) which are pre-packed they would mandatorily get covered within the ambit of Legal Metrology Act 2009 and the rules made thereunder. Accordingly GST would be applicable on the supply of pre-packaged and labelled shrimps upto 25 kgs irrespective of the fact whether it is meant for domestic supplies or for export as long as they are specified commodities that are pre-packaged.

Summary

Issues Involved:
1. GST applicability on the export of processed frozen shrimps packed in individual printed pouch/box and further packed inside a printed master carton.
2. GST applicability on the export of processed frozen shrimps packed in individual plain pouch/box and further packed inside a plain master carton.

Summary:

Issue 1: GST on Processed Frozen Shrimps in Printed Packaging
The applicant, engaged in exporting processed shrimps, sought an advance ruling on whether the export of processed frozen shrimps (HSN: 0306) packed in individual printed pouches/boxes and further packed inside printed master cartons (up to 25 kgs each) attracts GST. The key points considered were the definition of "pre-packaged and labelled" as per Section 2 of the Legal Metrology Act, 2009, and the relevant GST notifications. The ruling emphasized that since the inner packaging is printed and has a pre-determined quantity, it falls under the "pre-packaged and labelled" category, which is subject to GST. The ruling referenced Notification No. 6/2022-Central Tax (Rate) and the FAQs issued by CBIC, confirming that GST applies to such packages, even if intended for export.

Issue 2: GST on Processed Frozen Shrimps in Plain Packaging
The second query was whether the export of processed frozen shrimps (HSN: 0306) packed in individual plain pouches/boxes and further packed inside plain master cartons (up to 25 kgs each) attracts GST. The ruling clarified that even if the packaging is plain, as long as it is pre-packed and labelled with a pre-determined quantity, it falls under the "pre-packaged and labelled" category, subject to GST. The ruling reiterated the applicability of GST as per Notification No. 6/2022-Central Tax (Rate) and the Legal Metrology Act, 2009.

Conclusion:
The ruling concluded that GST is applicable on the export of processed frozen shrimps (HSN: 0306) packed in individual printed or plain pouches/boxes, further packed inside printed or plain master cartons (up to 25 kgs each), irrespective of whether the supply is for domestic use or export.

Ruling:
1. Yes, the export of processed frozen shrimps (HSN: 0306) packed in individual printed pouches/boxes attracts GST at applicable rates, even if further packed inside printed master cartons (up to 25 kgs each).
2. Yes, the export of processed frozen shrimps (HSN: 0306) packed in individual plain pouches/boxes, further packed inside plain master cartons (up to 25 kgs each), attracts GST at applicable rates.