2023 (4) TMI 204 - AAR - GST

Levy of GST - supply of 1kg packing red gram dal secondary packing in 50 kg bag to the AP State Civil Supplies Corporation Limited, Vijayawada as per the design and label given by the corporation with a prior agreement - HELD THAT - The first and foremost condition of taxability is that the commodity should have been a pre-packed commodity which means that the commodity is not packed for any specific known buyer. In the Instance case the applicant is packing the commodity at the behest and at the specific instructions of the buyer, ie., AP State Civil Supplies Corporation Limited. It is clearly evident from the package that the AP State civil have made very clear instruction as to the color, theme, transparency and the details to be printed on the package. Thus the commodity is packed for retail sale for any buyer who may purchase at a later point, but it is packaged to a specific buyer. Thus the first and foremost condition of taxability is not satisfied. Hence there is no question of taxability of the commodity in the instant case. In view of this the discussion as primary / secondary packaging or Institutional supply is nothing but infructuous.

Summary

Issues involved:
The judgment addresses the issue of whether the supply of 1kg packing red gram dall secondary packing in 50 kg bag to the AP State Civil Supplies Corporation Limited, Vijayawada as per the design and label given by the corporation with a prior agreement attracts GST.

Brief Facts:
The applicant, engaged in the business of pulses and dalls, is a successful bidder supplying red gram dall to the corporation as per specific guidelines provided by the corporation regarding packing and labeling.

Questions raised:
The applicant sought an advance ruling on the taxability of the supply of red gram dall to the corporation as per the specific design and label provided by the corporation.

Applicant's Interpretation of Law:
The applicant referred to Notification No.6 and 7 of 2022-CTR, stating that GST is applicable on pre-packaged and labeled commodities as per the Legal Metrology Act.

Discussion and Findings:
The judgment discusses the legal definition of "pre-packaged commodity" under the Legal Metrology Act and the conditions for a commodity to be considered pre-packaged. It emphasizes that the commodity should be packed without the purchaser being present and not specifically for a known buyer to be classified as pre-packaged. The judgment concludes that since the commodity in question is packed as per the specific instructions of the buyer, it does not meet the criteria of being pre-packaged for general sale. Therefore, the supply of red gram dall in this case does not attract GST.

Ruling:
The ruling states that the supply of 1kg packing red gram dall secondary packing in 50 kg bag to the AP State Civil Supplies Corporation Limited, Vijayawada, as per the design and label given by the corporation with a prior agreement, does not attract GST.