Categories: Gst Compliance

Pre-packaged & labelled item liable for GST@5% wef 18 July

Pre-packaged goods & labelled edible goods liable for the GST @ 5 percentage w.e.f. 18/07/2022

  • The edible goods taxable to pay GST @ 12 percentage or 5 percentage in case these goods are pre-packaged & labelled means that all the goods are placed in package, whether  theses are sealed or not, However its must carrying pre-determined quantity.
  • Pre-packaged Goods meaning :– Goods shall be placed in a package without purchaser being present to be called pre-packaged. Moreover, Goods package or fixing label shall be needed to bear Legal Meteorology Act declarations for levy GST.
  • Retail sale package- –according to Section 18 of Legal meteorology Act 2009 compulsory provide bearing of declaration according to the Rules. As per Meteorology law mandates declaration for packages intended for retail sale i.e. sale, distribution or delivery of commodity through retails shops for consumption by an individual or group of individuals. (According to Rule 6 read with Rule 3 of Legal Meteorology Packaged Commodity Rules 2011)

Meaning of whole sale package – Rule 24 of Legal Meteorology Rule 2011

  • As per Legal Meteorology Act, All the wholesale package must include declarations and which will be result that GST will be levied.
  • Whole sale packages are those that are either composed of several retail packages and are not intended for direct marketing to a single consumer or contain a commodity in bulk to enable sales to consumers in smaller quantities.
  • They are intended for sale, distribution, or delivery to intermediary and institutional consumers.
  • Whole sale packages also include containers with 10 or more properly labelled retail containers.

Details of items is exemption from declarations under the Legal Meteorology Rule 2011 (as per Rule 26 )

  • Specified Drug Formulations Agriculture form produce in packages above 50 kgs.
  • Fast Food Items packed by Restaurants and Hotels.
  • Packages containing commodities weighing/ measuring 10 Mls/10 gms or less from bearing of declaration.
  • Edible items -10mls/10g/ or less and Edible items more than 25 litres/25 kgs -do not needed.
  • Declaration and exempted from GST (clarity from the CBIC awaited)

Summary

Goods and services Tax will be liable on pre-packed & Labeled Pack  items @ 5% from 18th July 2022. Moreover pre-packed & Labeled Pack Goods above 25 kg & in a single packet will be exempt from GST.( As per 47th GST Council meeting held June 2022)

Practical aspects GST on pre packaged goods in India

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Tags: GST councilLegal Meteorology
3 years ago
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Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

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