Export of shrimps in individual printed/plain pouches upto 25 Kgs being ‘Pre-packaged and Labelled‘, liable to GST: AAR Tamilnadu

 

The Authority for Advance Ruling, Tamil Nadu addressed the issue of GST levy on the export of processed frozen shrimps packed in printed and plain pouches/boxes.

The applicant, engaged in shrimp export business, sources shrimps locally and processes them through various methods such as washing, de-veining, peeling, and freezing, using individual quick freezing or block freezing techniques.

The AAR thoroughly analyzed the provisions of the GST Act, considering the definitions and conditions outlined in the Legal Metrology Act, 2009. They emphasized that the export of goods is treated as interstate trade, subject to IGST, and is classified either as ‘pre-packaged and labelled’ or ‘other than pre-packaged and labelled’ based on the packaging and labelling requirements.

The shrimps are packed as per buyer’s instructions in inner packages ranging from 250 grams to 2 Kg and further in master cartons up to 25 Kgs; the packages meet the pre-determined quantity requirement.For printed packaging, it was held that if the inner packaging is printed and pre-determined, it falls under the ‘pre-packaged and labelled’ category, subject to GST as per Legal Metrology Act. AAR noted that printed pouches are considered pre-packaged and labelled for retail sale regardless of outer packaging print.

RULING

 1) The export of processed frozen shrimps (HSN: 0306), packed in individual printed pouch / box, attracts GST at applicable rates, even if they are further packed inside a printed master carton (of upto 25 kgs each) containing the design, label and other particulars provided by the buyer.

2) The export of processed frozen shrimps (HSN: 0306), packed in individual plain pouch / box, further packed inside a plain master carton (of upto 25 kgs each), attracts GST at applicable rates.

 

The copy of the order is as under: