This legal case deals with the applicability of Goods and ...

GST Applies to Export of Pre-Packaged Frozen Shrimps; 5% Tax on Shrimps Up to 25kg, Including Exports.

September 13, 2024

Case Laws     GST     AAR

This legal case deals with the applicability of Goods and Services Tax (GST) on the export of pre-packaged and labelled frozen shrimps. The key points are: According to the Legal Metrology Act, 2009 and rules, if the inner packaging is printed with a pre-determined quantity, it is considered a 'pre-packaged and labelled' commodity for retail sale, regardless of whether the outer packaging is printed or not. Consequently, the inner packaging of shrimps ranging from 250 grams to 2 kilograms falls under the 'pre-packaged and labelled' category and is liable for GST. The supply of shrimps in pouches or boxes up to 25kg, which are duly pre-packaged and labelled as per the Legal Metrology Act, is a taxable event and not an exempted or nil-rated supply. Where the quantity involved is 25kg or less for specified commodities like shrimps (HSN 0306), which are pre-packed, they are covered under the Legal Metrology Act, 2009, and rules. Therefore, GST at 5% is applicable on the supply of 'pre-packaged and labelled' shrimps up to 25kg, irrespective of whether it is for domestic supply or export, as long as they are specified pre-pack.

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