Goods and Services Tax – GST Dated:- 18-7-2022 – News – The changes relating to GST rate, in pursuance of recommendations made by the GST Council in its 47th meeting , came into effect from today, 18th of July, 2022. One such change is moving from imposition of GST on specified goods when bearing a registered brand or brand in respect of which an actionable claim or enforceable right in a court of law is available to imposition of GST on such goods when pre-packaged and labelled . Certain representations have been received seeking clarification on the scope of this change, particularly in respect of food items like pulses, flour, cereals, etc. (specified items falling under the Chapters 1 to 21 of the Tariff), as has been notified vide notification No. 6/2022-Central Tax (Rate), dated the 13th of July, 2022 , and the corresponding notifications for SGST and IGST. Following are the Frequently asked Questions (FAQ) to clarify certain doubts/queries regarding the GST levy on
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and packed in unit container (as mentioned above). With effect from 18.7.2022, these items would attract GST when prepackaged and labelled . Additionally, certain other items such as Curd, Lassi, puffed rice etc. when prepackaged and labelled would attract GST at the rate of 5% with effect from the 18th July, 2022. Essentially, this is a change in modalities of imposition of GST on branded specified goods to pre-packaged and labelled specified goods. [ Please refer to notification No. 6/2022-Central Tax (Rate) and corresponding notification under respective SGST Act, IGST Act ] What is the scope of pre- packaged and labelled for the purpose of GST levy on food items like pulses, cereals, and flours? For the purposes of GST, the expression pre- packaged and labelled means a pre-packaged commodity as defined in clause (l) of section 2 of the Legal Metrology Act, 2009, where the package in which
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be treated as pre-packaged and labelled for the purposes of GST levy In the context of food items (such as pulses, cereals like rice, wheat, flour etc), the supply of specified pre-packaged food articles would fall within the purview of the definition of 'pre-packaged commodity' under the Legal Metrology Act, 2009, and the rules made thereunder, if such pre-packaged and labelled packages contained a quantity upto 25 kilogram [or 25 litre] in terms of rule 3(a) of Legal Metrology (Packaged Commodities) Rules, 2011, subject to other exclusions provided in the Act and the Rules made thereunder. What is the scope of this coverage taking into account various exclusion(s) provided under the Legal Metrology Act and the rules made thereunder? For such commodities (food items- pulses, cereals, flour, etc.), rule 3 (a) of Chapter-II of Legal Metrology (Packaged Commodities) Rules, 2011, prescribes that package of
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f several packages intended for retail sale to ultimate consumer, say 10 packages of 10 Kg each, are sold in a larger pack, then GST would apply to such supply. Such package may be sold by a manufacturer through distributor. These individual packs of 10 Kg each are meant for eventual sale to retail consumer. However, a package of say rice containing 50 Kg (in one individual package) would not be considered a pre-packaged and labelled commodity for the purposes of GST levy, even if rule 24 of Legal Metrology (Packaged Commodities) Rules, 2011, mandates certain declarations to be made on such wholesale package. At what stage would GST apply on such supplies, i.e., whether GST would apply on specified goods sold by manufacturer/producer to wholesale dealer who subsequently sells it to a retailer? GST would apply whenever a supply of such goods is made by any person, i.e. manufacturer supplying to distributor, or distr
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ed commodity for the purpose of GST levy. Whether tax is payable if such packaged commodities are supplied for consumption by industrial consumers or institutional consumers? Supply of packaged commodity for consumption by industrial consumer or institutional consumer is excluded from the purview of the Legal Metrology Act by virtue of rule 3 (c) of Chapter-II of Legal Metrology (Packaged Commodities) Rules, 2011. Therefore, if supplied in such manner as to attract exclusion provided under the said rule 3(c),it will not be considered as pre-packaged and labelled for the purposes of GST levy. X is a rice miller who sells packages containing 20 kg rice but not making the required declaration under legal metrology Act and the Rules made thereunder (although the said Act and the rules requires him/her to make a declaration), would it still be considered as pre-packaged and
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