GST @ 5% is leviable on all types of jaggery, pre-packaged and labelled

In re Prakash and Company (GST AAR Karnataka)

The AAR, Karnataka in the matter of M/S Prakash and Company [Advance Ruling No. KAR ADRG 06/2023 dated January 23, 2023] ruled that all types of jaggery pre- packed and labelled are exigible to Goods and Services Tax (“GST”) at 5% as per SI. No. 91A of Notification No. 1/2017-Central Tax (Rate) dated June 28, 2017 (“the Goods Rate Notification”).

Facts:

M/s Prakash and Company (“the Applicant”) is a partnership firm being a selling agent of jaggery. The Applicant submitted that jaggery is sold in wrapped loose gunny sheets stitched with thread and weighing in 3 different sizes and that the jaggery lumps are not packed in any content, but are either wrapped in jute cloth or plastic paper. The Applicant further submitted that jaggery is exempted from GST as per Sl. No. 94 of the Notification No.2/2017-Central Tax (Rate), dated June 28, 2017 (“Goods Exemption Notification”).

Issue:

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