In re D D International Pvt. Ltd (GST AAR Haryana)
1. Whether GST would be leviable on export of pre-packaged and labelled rice upto 25 Kgs, to foreign buyer?
Yes
1. 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.
Yes
2. Whether GST would be applicable on supply of prepackaged and labelled rice upto 25 Kgs, to the factory of exporter. Exporter will export the rice,
Yes
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING,HARYANA
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, 2017 (hereinafter referred to as CGST Act, 2017) and Haryana Goods and Services Tax Act, 2017 (hereinafter referred to as HGST Act, 2017). Since the provisions of both the Acts are parimateria, any reference to provisions of 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 the applicant. And in this case, the applicant has undertaken in form ARA-01 that the issue is neither pending nor decided in any proceedings under any of the provisions of the Act. Besides the applicable fees in the case has been paid. So, he is eligible to seek an Advance Ruling under the above provisions and the case is being heard on merits.
Statement of facts as per ARA-01
1. That the applicant is engaged in the business of manufacturing and supplying of rice and we are supplying rice to customers in pre-packaged and labelled packages, having quantity upto 25 kilograms.We have 3 types of customers to whom sales/supplies are executed details of which is as under:
A. Customers located abroad (“foreign buyer supplies”):-
i) Foreign buyer provides the specifications which have to be printed/labelled on the packages of rice, which are intended for sale to it. Therefore, we procure empty bag and get them printed/labelled according to the specifications of the foreign buyer from supplier of packing material.
ii) The supplier of packing material dispatches the printed/labelled empty bags, having capacity upto 25 kgs, to our premises.
iii) We pack rice in our factory in these bags and export it to foreign buyer.
B. Customers located in India who purchase rice from us for the purpose of exports on “bill to ship to” basis (“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 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 13 th July, 2022
Further, as per Explanation (ii) of Notification No 1/2017-Central Tax (Rate) dated 28-6-2017, The expression ‘pre-packaged and labelled’ 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 prepacked 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.
The relevant extracts of Notification No 06/2022-Central Tax (Rate) dated 13 th July, 2022 has been reproduced below:-
Comments are closed.