In re Kalyan Aqua & Marine (GST AAR Andhra Pradesh)
This ruling by the Authority for Advance Ruling (AAR), Andhra Pradesh, concerns M/s. Kalyan Aqua & Marine Exports India Private Limited (the applicant), a company engaged in the processing and exporting of shrimp (HSN 0306). The applicant sought clarification on the applicability of Goods and Services Tax (GST) to the export of their processed frozen shrimps, specifically considering changes introduced by Notification No. 06/2022-CGST (R) dated July 13, 2022.
The applicant’s process involves procuring raw shrimp, subjecting it to processing steps like washing, de-veining, peeling, and freezing (using Individual Quick Freezing or Block Freezing), and then packaging it according to buyer specifications. The packaging uses a primary container (pouches or boxes) weighing between approximately 250 grams and 2.5 kilograms, which are then placed into master cartons (secondary packaging) with a maximum weight of 25 kilograms. Both primary and secondary packaging are printed with product details, weight, and branding.
The two questions raised before the AAR were:
1. Is the export of processed frozen shrimps (HSN 0306), packaged in individual printed pouches or boxes and subsequently placed inside a printed master carton (with a maximum weight of 25 Kilogram each) that includes design, label, and other specifications about the product, subject to GST?
2. Is the export of processed frozen shrimps (HSN 0306), packaged in individual printed pouches or boxes and subsequently placed inside a printed master carton weighing up to 25 kilograms, subject to GST?
The applicant’s interpretation relied on the amendment to entry No. 2 of Schedule I of Notification No. 01/2017-CGST(R), which, effective from July 13, 2022, applies GST to “All goods (other than fresh or chilled), pre-packaged and labelled.” The expression “pre-packaged and labelled” is defined by the notification’s explanation to mean a ‘pre-packaged commodity’ as per Section 2(l) of the Legal Metrology Act, 2009, where the package or label is required to bear declarations under that Act and its rules.
