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TMI Blog2024 (9) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... ns. In the instant case, the authorities observation after going through the content of the matter is that the supply of shrimps in pouches or boxes of upto 25kg, which duly pre-packaged and labelled as per Legal Metrology Act 2009 and the rule made there under is a taxable event and it is not an exempted / nil rated supply. Besides Ministry of finance Govt of india clarified the applicability of GST on pre packaged and labelled goods through FAQs, which were uploaded online on 18. 07.2022 w.r.t. the notification no 6/2022 (CGST RATE). And also, in this 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, who may be indigenous or outside the country. Therefore, where the quantity involved is 25Kgs or less in respect of specified commodities including shrimps (HSN 0306, as per S.No.4 of schedule 1 of notification 01/2017-central tax (rate) dated 28th June 2017) which are pre-packed, they would mandatorily get covered within the ambit of Legal Metrology Act, 2009, and the rules made there under. Accordingly, GST would be applicable on the supply of pre-packaged and labelled shrimps, capacity u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the technique used by the Applicant for the order. The products are weighed and packed into food grade polythene pouches/boxes. The sealed pouches are further packed into the master cartons, both are as per the specification and requirements of the buyer. vi). The weight of the individual inner packaging generally ranges from about 250 grams to 2 Kilograms which are further packaged in master cartons with a maximum weight of up to 25 Kilograms. vii). The Applicant is hereby filing an application before the Authority to understand whether in the case of export of pre-packaged and labelled processed shrimps by the Applicant, attracts GST, in view of the amendment in tax rate as per Notification No 6/2022 dated 13 July 2022, Central tax (CGST) at 2.5% and State tax (SGST) at 2.5%. 4. Questions raised before the authority: The applicant sought advance ruling on the following: i) Whether the export of processed frozen shrimps (HSN:0306), packed in individual printed pouch/box, further packed inside a printed master carton (of up to 25 kgs each) containing the design, label and other particulars provided by the buyer, attracts GST. ii) Whether the export of processed frozen shrimps (H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned pre-packaged commodity means a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre-determined quantity vi). The appellant submits that legal metrology Act will apply to the commodities packed in India where the ultimate consumer details are not available at the time of sale irrespective of the fact whether the goods are sold in India or exported outside India. vii). Further the appellant submits that, in the instant case the appellant is pre-packing the products as per the customer requirements ranging from kg to 2 KGs in primary packs by printing the customer brand name and other details as provided by the customer for the export sale. viii). Further the appellant submit that the clarification released by ministry of finance regarding the GST Levy on pre-packaged and labelled goods vide press release dated 18thJuly 2022 as A. If specified commodities are supplied in a package that do not require declaration(s) / Compliances under the Legal Metrology Act, 2009 and the rules made there under, the same would not be treated as pre-packaged and labelled for the purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sheries Private Limited, Bhimavaram, Andhra Pradesh registered under GST Act with registration 37AAACA2931P1ZI, on the rolls of Eluru Division. iii) The applicant is engaged in the business of exporting processed shrimps and sources the same from local farmers and further undergoes processing in the factory such as receiving, washing, de-veining, peeling, de-heading, tail removal, sorting, grading and freezing, as per the requirement of customers. The applicant uses different types of packing such as a) Primary packaging or inner packing i.e., packaging of inner boxes or pouches b) Secondary packaging or outer packing i.e., packaging of master carton. The primary packaging is based on the technique used by the Applicant for the order. The products are weighed and packed into food grade polythene pouches/boxes. The sealed pouches are further packed into the master cartons, both are as per the specification and requirements of the buyer. The weight of the individual inner packaging generally ranges from about 250 grams to 2 Kilograms which are further packaged in master cartons with a maximum weight of up to 25 Kilograms iv) The applicant has sought the advance ruling, as to a) Wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e respective Notifications, which is reproduced below :- The expression pre-packaged and labelled' means a 'pre-packaged commodity' as defined in clause (l) sub section (1) of section 2 of the Legal Metrology Act, 2009 (1 of 2010) where, the package in which the commodity is pre-packed or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made there under. Further, Section 2(1) of the Legal Metrology Act, 2009 (1 of 2010), defines the term pre-packaged commodity as follows: pre-packaged commodity means a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre-determined quantity . vii) Therefore, we find that according to the above provisions, a commodity to be considered as Pre-packed and labelled' shall associate with the following features, viz., a. that which comprises a pre-determined quantity as circumscribed under the meaning of pre-packaged commodity vide Section 2(1) of the Legal Metrology Act, and b. that which is required to bear the declarations und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24 of Legal Metrology (Packaged Commodities) Rules, 2011, mandates certain declarations to be made on such wholesale package. ix) We invite reference to the Notification no 06/2022 (CT Rate),dated 13th July 2022 wherein, GST has been made applicable on supply of pre-packaged and labelled commodities attracting provisions of Legal Metrology Act, 2009. G. after the Schedule VII, in the Explanation, for clause (ii) and the entries relating thereto, the following clause shall be substituted, namely:- (ii) The expression 'pre-packaged and labelled' means a 'pre-packaged commodity' as defined in clause (1) of section 2 of the Legal Metrology Act, 2009 (1 of 2010) where, the package in which the commodity is pre-packed or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made there under. x) The applicant also made a reference to the clarifications issued by Ministry of Finance which is stated as under: Ministry of Finance clarification on doubts/queries regarding the GST levy on 'pre-packaged and labelled' goods vide Press Release dated 18th July 2022. a) If specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the considered view that GST would be applicable on the supply of pre-packaged and labelled shrimps, capacity upto 25 kgs, it will be liable for GST @ 5%, irrespective of the fact whether it is for domestic supply or for exported outside the country, as long as they are specified commodities that are pre-packaged. The advance ruling authority agrees with the observation regarding the applicability of GST levy @5% on pre packaged and labelled irrespective of the fact that whether it is for domestic sale or exported out side the country. In view of the above discussions, we pass the following orders: RUILNG (Under Section 98 of Central Goods and Services Tax Act 2017 and the Andhra Pradesh Goods and Services Tax Act 2017) Question : whether the export of processed frozen shrimps (HSN:0306), packed in individual printed pouch/box, further packed inside a printed master carton (of up to 25 kgs each) containing the design, label and other particulars provided by the buyer, attracts GST. Answer : Affirmative Question: Whether the export of processed frozen shrimps (HSN:0306), packed individual plain pouch/box, further packed inside a plain master carton (of up 25 kgs each), attracts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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