Hello readers, Today I will discuss GST on Pre-packaged and Labeled items in simplified manner-
Before 18.07.2022 : Edible items put up in units container and bearing registered brand name or unregistered brand name on which actionable claim is enforceable were only taxable @ 5%, except tender coconut and namkeen bhujis, mixture chabena taxable @ 12%
After 18.07.2022 – NN 6/2022 and 7/2022 have now w.e.f.18-07-2022 made edible items taxable @ 5%/12% if these items are *pre packaged and labled* i.e. items are placed in package, whether sealed or not, carrying *pre determined quantity.
What is meaning of ‘’Pre-packaged ‘’– The items must be placed in a package without the purchaser being present to be called pre-packaged.
Further, package or its label must be required to bear declarations under Legal Meteorology Act to levy GST.
Retail sale package-
-S.18 of Legal meteorology Act 2009 mandates bearing of declaration as per Rules.
Rule 6 read with Rule 3* of Legal Meteorology Packaged Commodity Rules 2011 mandates declaration for packages intended for retail sale* i.e. sale, distribution or delivery of commodity through retails shops for consumption by an individual or group of individuals
Now question comes what declarations required-
- Name and address of manufacturer
- Name of commodity
- Quantity
- Date of manufacturer
- Retail sale price
Two exceptions- ( No declaration required )
- Packages of commodities containing quantity of more than 25 kgs/25ltr
- Packages meant for industrial consumers or institutional consumers like transportation, airways, railways, Hotels, Hospitals or any other service institution who buy packaged commodity directly from manufacturer for use.
Whole sale package-
Rule 24 of Legal Meteorology Rule 2011* every wholesale package shall bear declarations under Legal Meteorology Act and hence gst shall be charged.
Whole Sale Packages are packages intended for sale, distribution or delivery to intermediary and Institutional consumers and are
- Either comprised of number of retail packages and is not intended for sale direct to single consumer or
- Contain commodity in bulk to enable sale to consumer in smaller quantity.
What it means – Packages containing ten or more retail packages, duly labeled are also whole sale packages.
Exemption from declarations under Rule 26 of Metrology Rules-
1. Packages containing commodities weighing/ measuring 10 gms/ 10 Mls or less from bearing of declaration.
2. Fast Food Items packed by Restuarants and Hotels.
3. Specified Drug Formulations
4. Agriculture form produce in packages above 50 kgs.
Summary-
- Edible items -10g/10mls or less and
- Edible items more than 25 kgs/25 ltrs
-do not require declaration and exempted from GST………….
Queries /doubts related to above mailed at [email protected]
