Background:
Earlier, the CBIC vide Notification No. 2/2017- Central Tax (Rate) dated June 28, 2017 (“the Goods Exemption Notification”) w.e.f. June 22, 2017 to notify exemption of goods under Section 11(1) of the Central Goods and Service Tax Act, 2017 (“the CGST Act”).
Further, the GST Council’s 47th meeting held on June 28-29, 2022 has recommended to withdraw exemption on certain specified food items, grains etc. which are not branded, or right on the brand has been foregone.
Accordingly, following notification has issued:
Notification:
The CBIC vide Notification No. 07/2022-Central Tax (Rate) dated July 13, 2022 has issued amendments in the Goods Exemption Notification so as to withdraw exemption on certain specified food items, grains etc. which are not branded or right on the brand has been foregone in the following manner: –
|
S. No. |
Chapter/ Heading |
Particulars |
| 9. | 0202, 0203, 0204, 0205, 0206, 0207, 0208, 0209, 0210 |
All goods, other than fresh or chilled, other than pre-packaged and labelled. |
|
22. |
0303, 0304, 0305, 0306, 0307, 0308, 0309 | All goods, other than fresh or chilled and, other than pre-packaged and labelled. |
| 26. | 0403 |
Curd, Lassi, Butter milk, other than pre-packaged and labelled. |
|
27. |
0406 | Chena or paneer, other than pre-packaged and labelled. |
| 29. | 0409 |
Natural honey, other than pre-packaged and labelled. |
|
30B. |
0504 | All goods, other than fresh or chilled, other than pre-packaged and labelled. |
| 45. | 0713 |
Dried leguminous vegetables, shelled, whether or not skinned or split, other than pre-packaged and labelled. |
|
46A |
0714 | Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, frozen, whether or not sliced or in the form of pellets, other than pre-packaged and labelled. |
| 46B | 08 |
Dried makhana, whether or not shelled or peeled, other than pre-packaged and labelled. |
|
65. |
1001 | Wheat and meslin, other than pre-packaged and labelled. |
| 66. | 1002 |
Rye, other than pre-packaged and labelled. |
|
67. |
1003 | Barley, other than pre-packaged and labelled. |
| 68. | 1004 |
Oats, other than those, other than pre-packaged and labelled. |
|
69. |
1005 | Maize (corn), other than pre-packaged and labelled. |
| 70. | 1006 |
Rice, other than pre-packaged and labelled. |
|
71. |
1007 | Grain sorghum, other than pre-packaged and labelled. |
| 72. | 1008 |
Buckwheat, millet and canary seed; other cereals such as Jawar, Bajra, Ragi, other than pre-packaged and labelled. |
|
73. |
1101 | Wheat or meslin flour, other than pre-packaged and labelled. |
| 74. | 1102 |
Cereal flours other than of wheat or meslin, maize (corn) flour, Rye flour, etc., other than pre-packaged and labelled. |
|
75. |
1103 | Cereal groats, meal and pellets, other than pre-packaged and labelled. |
| 77. | 1105 |
Flour, powder, flakes, granules or pellets of potatoes, other than pre-packaged and labelled. |
|
78. |
1106 | Flour, of the dried leguminous vegetables of heading 0713 (pulses) , other than guar meal 1106 10 10 and guar gum refined split 1106 10 90, of sago or of roots or tubers of heading 0714 or of the products of Chapter 8 i.e. of tamarind, of singoda, mango flour, etc., other than pre-packaged and labelled. |
| 94. | 1701 or 1702 |
Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery; Khandsari Sugar, other than pre-packaged and labelled. |
|
95. |
1904 | Puffed rice, commonly known as Muri, flattened or beaten rice, commonly known as Chira, parched rice, commonly known as khoi, parched paddy or rice coated with sugar or gur, commonly known as Murki, other than pre-packaged and labelled. |
| 97A | 2009 89 90 |
Tender coconut water, other than pre-packaged and labelled. |
|
99. |
2201 | Water, other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container |
| 108. | 3101 |
All goods and organic manure, other than pre-packaged and labelled. |
|
118. |
4907 | Cheques, lose or in book form |
| 122. | 4905 |
Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed. |
|
132A |
53 | Coir pith compost, other than pre-packaged and labelled |
| 141. | 8807 |
Parts of goods of heading 8801 |
After the Schedule, in the Explanation, for clause (ii), the following clause shall be substituted, namely: –
“(ii) The expression ‘pre-packaged and labelled’ means a ‘pre-packaged commodity’ as defined in clauses (l) of section 2 of the Legal Metrology Act, 2009 (1 of 2010) where, the package in which the commodity is pre-packed or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder.”.
This notification shall come into force on July 18, 2022.
Our comments:
Now, GST will be applicable on supply of pre-packaged & labelled goods.
The expression ‘pre-packaged and labelled’ has been defined as:
“a ‘pre-packaged commodity’ as defined in clauses (l) of section 2 of the Legal Metrology Act, 2009 (1 of 2010) where, the package in which the commodity is pre-packed or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder.”
It is to be noted that Section 2(l) of the Legal Metrology Act, 2009 defines ‘pre-packed commodity’ as under:
“(l) “pre-packaged commodity” means a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre-determined quantity;”
Note: Similar changes have been made vide Notification No. 06/2022-Central Tax (Rate) dated July 13, 2022 in Notification No. 1/2017- CGST Rate Schedule Central Tax (Rate) dated June 28, 2017 (“the Goods Rate Notification”).
Similar notifications have been passed under the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”) and the Union Territory Goods and Services Tax Act, 2017 (“the UTGST Act”).
CGST (Rate) Notification:
- Notification No. 07/2022-Central Tax (Rate) dated July 13, 2022
- Notification No. 06/2022-Central Tax (Rate) dated July 13, 2022
IGST (Rate) Notification:
- Notification No. 07/2022- Integrated Tax (Rate) dated July 13, 2022
- Notification No. 06/2022-Integrated Tax (Rate) dated July 13, 2022
UTGST (Rate) Notification:
- Notification No. 07/2022- Union Territory Tax (Rate) dated July 13, 2022
- Notification No. 06/2022- Union Territory Tax (Rate) dated July 13, 2022
DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.
We have recently released the 7th Edition (May, 2022) of our book on Goods and Services Tax, titled, “GST LAW AND COMMENTARY – WITH ANALYSIS AND PROCEDURES”, updated with the Finance Act, 2022 in a set of 4 Volumes. We thank you all for the support and your enduring response.
Have a look at the complete tour of the Book at: https://cutt.ly/nF6O0oN
Order your copy now and be a part of the GST learning excursion in the most comprehensive and lucid form !!
For more details and purchase online at: https://cutt.ly/RFMox8D
