In re Sandhya Aqua Exports (GST AAR Andhra Pradesh)
M/s Sandhya Aqua Exports Private Limited, a company engaged in the processing and exporting of shrimp (HSN 0306), sought an Advance Ruling from the Andhra Pradesh Authority for Advance Ruling (AAR) regarding the Goods and Services Tax (GST) liability on their exports.
The applicant processes raw shrimp through steps including washing, de-veining, peeling, de-heading, tail removal, sorting, grading, and freezing. The processed frozen shrimp are packaged for export using two methods:
1. Primary packaging: Individual pouches or boxes weighing approximately 250 grams to 2.5 kilograms.
2. Secondary packaging: Master cartons (up to 25 kilograms maximum weight) containing the primary packages. Both primary and secondary packaging may be printed with product details, labeling, and branding information.
The central questions raised by the applicant were:
1. Whether the export of processed frozen shrimps, packaged in individual printed pouches or boxes and placed in a printed master carton (up to 25 Kg each) with buyer specifications, attracts GST.
2. Whether the export of processed frozen shrimps, packaged in individual plain pouches or boxes and placed in a plain master carton (up to 25 Kg each), attracts GST.
The applicant noted that the tax rate entry for “All goods (other than fresh or chilled)” was amended via Notification No. 06/2022-CGST (R) dated July 13, 2022, changing the criteria from “bearing a registered brand name” to “pre-packaged and labelled” effective from July 13, 2022. The notification’s explanation defines “pre-packaged and labelled” using the definition of “pre-packaged commodity” under Section 2(l) of the Legal Metrology Act, 2009 (LMA), where the package or label is required to bear declarations under LMA and its rules. A “pre-packaged commodity” is defined as a commodity placed in a package, without the purchaser being present, with a pre-determined quantity.
