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TMI Blog2023 (3) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... CGST Act, 2017 in this order should be construed as a reference to corresponding provisions in HGST Act, 2017/IGST Act, 2017 as well. Sections 97(2) of the CGST Act, 2017 prescribes that Advance Ruling may be sought inter alia on the question of (b) Applicability of a notification issued under the provisions of this Act (e) Determination of the liability to pay tax on any goods or services or both. Proviso with reference to the Section 98(2) of CGST Act, 2017 states that where the questions raised in the application is already pending or decided in any proceedings in the case of the applicant under any provision of this Act, the application may be rejected by the Advance Ruling Authority after providing an opportunity of being heard to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns 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 pack ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lled' means a 'pre-packaged commodity' as defined in clause (I) 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 thereunder.'. Further, the Ministry of Finance has clarified certain doubts regarding the GST levy on 'prepackaged and labelled' goods vide Press Release dated 18th July 2022.Vide FAQ 2 of the said press release, it has been clarified that: a) if specified commodities are supplied in a package that do not require declaration(s)/compliance(s) under the Legal Metrology Act, 2009 (1 of 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be required on export of exempt goods:- a. Issuance of E-way bill b. Issuance of E-invoice c. Obtaining Letter of Undertaking/Bond for export Questions on which Advance Ruling has been sought:- 1. Whether GST would be leviable on export of pre-packaged and labelled rice upto 25 Kgs, to foreign buyer? 2. Whether GST would be applicable on supply of pre-packaged and labelled rice upto 25 Kgs, to exporter on "bill to ship to" basis i.e., bill to exporter and ship to customs port. Exporter ultimately exports the rice to foreign buyer. 3. Whether GST would be applicable on supply of pre-packaged and labelled rice upto 25 Kgs, to the factory of exporter. Exporter will export the rice, PERSONAL HEARING: On 11.10.2022 Ms. Suman Bansal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supply of pre-packaged and labeled rice upto 25 KGs, to the factory of exporter. Exporter will export the rice. In this regard "Neither notification no. dated 6/2022 and dated 13th July, 2022, that nor the Legal Metrology Act, 2009 has made any 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, the applicant has sought an advance ruling that whether these supplies attract the levy of tax under the GST Act, 2017 or not? The authorities observations after going through the contents of the matter is that the legislature intention is that the supply of the rice in packets of upto 25 Kg which are duly pre-packaged and labelled as per the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder is an taxable event and It's not an exempted/nil rated supply. Besides Ministry of Finance, Govt, of India has clarified the applicability of GST on pre-packaged and labelled goods through FAQs which were uploaded online on 18th July, 2022 w.r.t the notification no. 6/2012-CT(Rate). Though FAQs are not binding on the statutory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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