GST @ 5% is leviable on all types of jaggery, pre-packaged and labelled

[CA Bimal Jain]

The AAR, Karnataka in the matter of M/S Prakash and Company [2022 (1) TMI 1339 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA] ruled that all types of jaggery pre- packed and labelled are exigible to Goods and Services Tax (“GST”) at 5% as per SI. No. 91A of Notification No. 1/2017-Central Tax (Rate) dated June 28, 2017 (“the Goods Rate Notification”).

Facts:

M/s Prakash and Company (“the Applicant”) is a partnership firm being a selling agent of jaggery. The Applicant submitted that jaggery is sold in wrapped loose gunny sheets stitched with thread and weighing in 3 different sizes and that the jaggery lumps are not packed in any content, but are either wrapped in jute cloth or plastic paper. The Applicant further submitted that jaggery is exempted from GST as per Sl. No. 94 of the Notification No.2/2017-Central Tax (Rate), dated June 28, 2017 (“Goods Exemption Notification”).

Issue:

Whether the supply of jaggery in wrapped loose gunny sheets stitched with thread would be covered under Sl. No. 94 of the Goods Exemption Notification and exempt from GST?

Held:

The AAR, Karnataka in M/S Prakash and Company [2022 (1) TMI 1339 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA has held as under:

• Stated that, all types of jaggery, pre-packaged and labelled are covered under Sl. No. 91A of the Goods Rate Notification.
• Held that, all types of jaggery, pre-packaged and labelled are exigible to GST at 5%.

Relevant Provisions:

SI.No.91A of the Goods Rate Notification:

“Schedule I - 2.5%

“Sl.No.	Chapter/Heading/Sub-heading/ Tariff item	Description of Goods
91A	1701 or 1702	Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and labelled; Khandsari Sugar, pre-packaged and labelled”

(Author can be reached at [email protected])

Discussions to this article

[Bharat Cholleti]

Dear sir,

Thank you for engligtening us

All types of Jaggery with prepackaged and jaggery HSN 1701. Jaggery lumps would also be avaialble in predetermined weight like 10 kg or so without any wrapper like gunny stitiched or plastic is also taxable sir?