“Pre-packaged and Labelled packaged as per FAQ F. No. 190354/172/2022-TRU Dated 17.07.2022”
Various Scenarios have been reproduced as per FAQ
Taxability:
Supply of pre-packed atta meant for retail sale to the ultimate consumer of 25 Kg shall be liable to GST.
Taxability:
A single package of these items [cereals, pulses, flour etc.] containing a quantity of more than 25 Kg/25 litre would not fall in the category of a pre-packaged and labelled commodity for the purposes of GST and would therefore not attract GST.
“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.
Taxability:
Yes, if several packages intended for retail sale to the ultimate consumer, say 10 packages of 10 Kg each, are sold in a larger pack, then GST would apply to such supply.
Now, Retailer Supplies in Loose Quantity from 25KG Package then,
Such Supply by the retailer is not a supply of packaged commodity for the purpose of GST Levy.
Taxability:
The supply of packaged commodities for consumption by industrial consumers or institutional consumers is excluded from the purview of the Legal Metrology Act by virtue of rule 3 (c) of Chapter II of Legal Metrology. Therefore, if supplied in such a manner as to attract exclusion provided under the said rule 3(c) it will not be considered pre-packaged and labelled for the purposes of GST levy.
Suggestive Points:
Loose commodity supply will not attract GST as the same should not be Pre-packed & Labelled
Commodity supply will not attract GST if quantity is more than 25KG/25Litre as the same is not required to be Pre-packed & Labelled as per the Legal Metrology Act.
Commodity supply which is pre-packed & labelled mandate as per Legal Metrology Act then GST will be applicable (exclusions are available such as supply to industrial consumer or institutional consumer etc.)
Supply of such specified commodity having the following two attributes would attract GST
It is pre-packaged; and
It is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the Rules made thereunder.
Note:- In the context of food items (such as pulses, cereals like rice, wheat, flour etc), the supply of specified pre-packaged food articles would fall within the purview of the definition of 'pre-packaged commodity' under the Legal Metrology Act, 2009, and the rules made thereunder, if such pre-packaged and labelled packages contained a quantity up to 25 kilograms [or 25 litres] 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. (ii) It is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the Rules made thereunder.
Comments