GST on Export of Pre-Packaged Rice: AAR Ruling

In re Satyam Balajee Rice Industries Private Limited (GST AAR Chhattisgarh)

Advance ruling clarifies regarding GST leviability on export of pre-packaged and labelled rice up to 25kgs, to foreign buyer, to exporter on bill to ship to basis i.e. bill to exporter and ship to customs part and to the factory of exporter.

According to the GST AAR Chhattisgarh ruling:

i. Export of pre-packaged and labelled rice up to 25 kgs to a foreign buyer is subject to GST at a rate of 5% IGST. This is applicable from 18.7.2022 and requires compliance with the provisions stated in Notification no. 01/2017- Integrated tax (Rate) dated 28.6.2017 as amended.

ii. The supply of pre-packaged and labelled rice up to 25kgs to an exporter on a “bill to ship to” basis attracts GST at a rate of either 5% IGST or 2.5% CGST + 2.5% SGST, depending on the circumstances. The exporter subsequently exports the rice to a foreign buyer. Compliance with the provisions in Notification no. 01/2017-CT(Rate)/Integrated tax (rate) dated 28.6.2017 as amended is necessary, effective from 18.7.2022.

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