TMI Blog2023 (3) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... ne on 18th July, 2022 w.r.t the notification no. 6/2012-CT(Rate). Though FAQs are not binding on the statutory authorities but they have a persuasive value for any authority while interpreting the legal provisions. From the perusal of the said notification and subsequent clarification on it, it can be said that in the present matter if supplied goods are the pre-packaged and labelled and in the packages of less than or equal to 25 kg in quantity then the same are taxable. Further, the scope of supply under the GST Act, 2017 is an all encompassing event and only goods and services which have been categorically declared as non taxable/exempted/nil rated supplies under the Act are outside the purview of the section 7 of the CGST Act, 2017. Thus, the transactions undertaken by the applicant falls within the purview of the scope of supply and attracts levy of tax as applicable under the CGST/HGST/IGST Act, 2017. - SUNDER LALA AND KUMUD SINGH, MEMBER APPLICANT'S ELIGIBILITY FOR SEEKING AN ADVANCE RULING: To file an application before the Authority of Advance Ruling, the applicant must satisfy the conditions prescribed under the Central Goods and Services Tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dispatches the printed/labelled empty bags, having capacity upto 25 kgs, to our premises on directions of exporter (i.e., on bill to ship to basis, bill to exporter and ship to us). ii) We pack the rice in empty bags and dispatch the pre packaged rice to customs port on instructions of Exporter (i.e bill to exporter and ship to customs port). Exporter ultimately exports the rice to foreign buyer. C. Customers located in India who purchase rice from us for the purpose of exports ( Exporter ),- i) The supplier of packing material dispatches the printed/labelled empty bags, having capacity upto 25 kgs, to our premises on directions of exporter (i.e., on bill to ship to basis, bill to exporter and ship to us). ii) We pack the rice in empty bags and dispatch the pre packaged rice to factory of Exporter. Exporter exports the pre packaged rice to foreign buyer. In view of amendment in Entry 51 of Schedule I of Notification No 1/2017-Central Tax (Rate) dated 28-6-2017, Central Tax (CGST) @2.5% and State Tax (SGST) @2.5% is applicable on supply of pre-packaged and labelled rice with effect from 18th July 2022 (Notification No 06/2022-Central Tax (Rate) dated 13th July, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contained a quantity upto 25 kilogram [or 25 litre] in terms of rule 3(a) of Legal Metrology (Packaged Commodities) Rules, 2011, subject to other exclusions provided in the Act and the Rules made thereunder. Applicant's interpretation of the legal provisions with respect to the issue at hand:- 1. GST would apply on specified goods where the pre-packaged commodity is supplied in packages containing quantity of less than or equal to 25 kg. 2. Pre-packaged and labelled commodities manufactured exclusively for export have not been excluded from the Legal Metrology Act, 2009 (1 of 2010), and the rules made thereunder. 3. Therefore, we understand that GST would be applicable on the supply of pre-packaged and labelled rice upto 25 kgs, irrespective of the fact that it is for domestic sale or for the purpose of exports. 4. Without prejudice to the above, it is stated that if the then supply of pre-packaged rice upto 25 kg for the purpose of Export is exempted from GST. Then, following compliances under the GST law would not be required on export of exempt goods:- a. Issuance of E-way bill b. Issuance of E-invoice c. Obtaining Letter of Undertaking/Bond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... differentiation with regard to applicability of GST on export of goods/mentioning of declarations or pre-packaged commodities for export. Therefore, if rice is being supplied in pre-packaged and labeled bags, having capacity upto 25 Kg, it will be liable for GST @ 5% irrespective of the fact that it is for domestic supply or for export. DISCUSSION AND FINDING: The Authority has deliberated upon all the factual details and legal provisions with reference to the issue at hand and equally considered the verbal submissions made by the representative of the applicant during the personal hearing. Besides the details of the matter available on the case file has also been perused by us. It is noticed that the applicant is a manufacturer of rice and supplies the goods in the taxable as well as non taxable territory. He has mentioned that there are three types of customers to whom the supply of rice is being made.- i. The applicant exports the goods to the foreign buyer/recipient after procuring the empty bags from the domestic market and printing and labelling it as per the specification given by the recipient of the goods and pack 25 Kg rice in the said labelled and print ..... X X X X Extracts X X X X X X X X Extracts X X X X
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