GST : SUPPLY OF GOODS IN UNIT CONTAINERS
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 28-2-2019
In one of the advance rulings, assessee was supplying animal carcass in its natural shape in frozen state in different weights and sizes in bags. The ruling was sought on whether such supplier can be considered to have been supplied such goods in 'unit containers' .
In Re: Ahmednagar District Goat Rearing and Processing Cooperative Federation Ltd. 2018 (5) TMI 1393 – AUTHORITY FOR ADVANCE RULING – MAHARASTRA ;
In the instant case, Ahmednagar District Goat Rearing and Processing Co-op Ltd. was engaged in slaughtering and processing of sheep/goat meat and supplied these products to Army against tender. It supplied to Army sheep/ goat meat in carcass form i.e. the whole animal carcass in its natural shape in frozen state. Naturally, the carcass would be in different weight and sizes. Further, there was no fixed quantity & size in which these carcasses were d
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Ruling was also sought on taxability / exemption.
W.e.f. 1.7.2017, the relevant GST notifications provided for the following conditions:
* W.e.f. from 1st July, 2017 till 14th November, 2017:
* Must be frozen
* Must be packed in unit container
W.e.f. from 15th November, 2017 onwards:
* Must be frozen
* Must be packed in unit container
* Must bear a brand
The words 'unit container' have been defined similarly in both the Notification No.1-Integrated Tax (Rate) and Notification No, 2/2017- Integrated Tax (Rate) of the IGST Act as under –
The phrase "unit container" means a package, whether large or small (for example, tin, can, box, jar, bottle, or carton, drum, barrel, or canister) designed to hold a predetermined quantity or number, which is indicated on such package.
The product, in question was sheep/ goat meat in carcass form i.e. the whole animal carcass in its natural shape. It is supplied in frozen state in LDPE and HDPE bags. The above defin
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nit container' and these products will be covered by schedule entry 4 of Notification No. 1 – Integrated Tax (Rate) during period 1.7.2017 to 13.11.2017. From 14.11.2017 onwards, the products would be covered under schedule entry 1 of Notification No. 1- Integrated Tax (Rate).
The appellate Authority for Advance Ruling has however modified this ruling vide Order dated 11.09.2018 and reported hereunder.
Appellate Ruling
Being aggrieved, the matter went to Appellate Authority for Advance Ruling, Maharashtra [In Re: Ahmednagar District Goat Rearing and Processing Cooperative Federation Ltd. 2018 (9) TMI 1184 – APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA ].
It was observed that the definition of 'unit container' is provided under the CGST Act as an explanation to the exemption Notification and we do not see any reason to resort to the similar definitions available in other Acts/Statutes. So, we will concentrate and restrict our scope to the definition available under the CGST A
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d goods about the fixed quantity/weight/number contained in the package which was not the case. At nowhere, it was mentioned that the said bags (LDPE or HDPE) should contain any fixed weight/quantity or number of the goods to be supplied. Just by mentioning the weight of the carcass (which may be one or two in number) on the outer packing in no way can be considered as the pre-determined quantity of the package. There is no doubt that the samples of bags produced before us during hearing are covered under 'package' as per the definition given in explanation to the notification but that package is not designed to hold any predetermined quantity.
The AAAR held that the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by appellant against tender shall not qualify as product put up in 'unit container'.
Sch
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