In re Abhithanjali Traders (GST AAR Tamilnadu)
Applicant proposed to supply frozen chicken contained in a wholesale bag of 30kgs containing 15 small packs of 2 kg each to institutional customers or to a distributor who would further supply to institutional customers or to non-institutional customers.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, TAMILNADU
1. M/s Abhithanjali Traders, No.62-1, Kattu Valavu Kilakku, Namagiripct Post, Rasipuram TK, Namakkal, Pincode 637406 (hereinafter referred to as The Applicant), a GST Registrant, is a Partnership firm under the Administrative control of Centre and is engaged in trading of grains and pulses for Feed Industries and Chilled Chicken for customers.
2.1 The Applicant submitted a copy of Electronic Cash Ledger evidencing payment of application fees of Rs.5,000/- each under sub-rule (1) of Rule 104 of CGST Rules 2017 and SGST Rules 2017.
2.2 The applicant has submitted that –
➣ They propose to undertake trading of the items viz. Poultry Meat – Not Cut in pieces (frozen products attain a temperature of- 180C or below] falling under HSN Code – 0207 1200 and Poultry Meat — Cuts and Offal [frozen products attain a temperature of – 18°C or below] falling under HSN Code – 0207 1400;
➣ The said items would be purchased from the manufacturer viz. M/s. Shanthi Feeds Private Limited, Coimbatorc;
➣ The supply is in the form of a Wholesale bag of 30 kgs containing 15 small packs of 2 kgs each;
➣ The package contains a specific declaration — “Packed exclusively for Institutional Sale and not for Retail Sale”;
➣ The supply would be made to the Institutional buyers in any of the two modes:
➣ Supply made by the Applicant directly to the institutional buyers; or
➣ Supply made by the Applicant to another distributor who then supplies to institutional buyers;
➣ If they arc not able to sell the said products to institutional buyers either directly or through distributors, they may also explore the possibility of selling it to non-institutional buyers.
3.1 On interpretation of law, applicant stated that –
➣ In the instant case, the frozen chicken being supplied falls under subheading 0207 1200: “Not cut in pieces, frozen” and under subheading 0207 1400: “Cuts and Offal” respectively;
➣ As per S1.No.1 of Schedule 1 to Notification No.01/ 2017 dated 28.06.2017 as amended, read with Notification No.6/2022-CT (R) dated 13.07.2022, against HSN 0207, “All goods other than fresh or chilled, pre-packaged and labelled” have been subjected to CGST at the rate of 5%;
➣ As per SI.No.9 of Notification No.02/2017-CT(Rate) dated 28.06.2017 as amended, read with Notification No.7/2022-CT (R) dated 13.07.2022, against HSN 0207, “All goods other than fresh or chilled, other than pre-packaged and labelled” have been exempted from the levy of GST,
➣ Meat is chilled when it attains a temperature of 00C to 40C which carries a HSN code of 0207 1100 [Not cut in pieces] and HSN Code 0207 1300 [Cuts and Offal]. Meat is frozen when it attains a temperature of -180C or below which carries a HSN code of 0207 1200 [Not cut in pieces] and HSN Code 0207 1400 [Cuts and Offal];
➣ Where frozen chicken is pre-packed and labelled, GST is applicable at the rate of 5% with effect from 18.07.2022 and where frozen chicken is not pre-packed and labelled, then supply of the same is exempted;
➣ Notification Notification No.6/2022-CT (R) dated 13.07.2022 and Notification No.7/2022-CT (R) dated 13.07.2022 have inserted an explanation to the Rate Notification No.1/ 2017 and Exemption Notification No.2/2017 respectively, for defining the term “pre-packaged and labelled” as follows:
