GST Tax Rates for Frozen Sheep/Goat Carcasses in Unit Containers Clarified by Authority

The packaging used by the applicant, M/S Ahmednagar District Goat Rearing and Processing Co-op Federation Ltd., qualifies as a "unit container" under GST law as it meets the requirement of indicating a predetermined quantity. Therefore, the frozen sheep/goat carcasses supplied by the applicant are taxable at 12% from 1st July 2017 to 13th November 2017 and at 5% from 14th November 2017 onwards, as per specified entries in the relevant notifications. The authority confirmed the taxability of the product based on it being considered a "unit container" and branded.

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Issues Involved:
1. Whether 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 the applicant against tender shall qualify as product put up in "unit container"Rs.
2. Whether the products as mentioned in query 1 shall be taxable under GST as per specified entries of the relevant notifications or fall under the exemption listRs.

Issue-Wise Detailed Analysis:

Issue 1: Qualification as "Unit Container"

Facts and Contentions:
- The applicant, M/S Ahmednagar District Goat Rearing and Processing Co-op Federation Ltd., supplies frozen sheep/goat carcasses in LDPE bags, which are not sealed and do not have weight mentioned. These LDPE bags are further packed in HDPE bags with the combined weight marked manually.
- The term "unit container" is defined in the notifications as a package designed to hold a predetermined quantity or number, indicated on the package.

Applicant's Argument:
- The applicant contends that their packaging does not qualify as a "unit container" because the LDPE bags are not sealed, and the weight is not predetermined or standardized.

Authority's Observations:
- The definition of "unit container" includes any package designed to hold a predetermined quantity or number, which is indicated on the package.
- The HDPE bags used by the applicant do indicate the weight of the carcasses, thus meeting the requirement of indicating a predetermined quantity.
- The term "unit container" does not specify that the package must be sealed or that the quantity must be standardized in specific units like 1kg, 100ml, etc.
- The bags used by the applicant are designed to hold a predetermined number of carcasses, and the weight is indicated on the package, satisfying the definition of "unit container."

Conclusion:
- The authority concluded that the packaging used by the applicant qualifies as a "unit container" under the GST law.

Issue 2: Taxability under GST

Relevant Notifications:
- Notification No. 1/2017-Integrated Tax (Rate) dated 28th June 2017 specifies that frozen meat of sheep or goats put up in unit containers is taxable at 12% till 13th November 2017.
- Notification No. 43/2017-Integrated Tax (Rate) dated 14th November 2017 reduces the tax rate to 5% for such products if they are branded.
- Notification No. 2/2017-Integrated Tax (Rate) dated 28th June 2017 exempts meat of sheep or goats, other than frozen and put up in unit containers, from GST.
- Notification No. 44/2017-Integrated Tax (Rate) dated 14th November 2017 continues the exemption for non-branded products.

Applicant's Argument:
- The applicant argues that their product should be exempt from GST as it does not qualify as a "unit container."

Authority's Observations:
- The authority examined the relevant notifications and concluded that the product supplied by the applicant qualifies as a "unit container."
- For the period from 1st July 2017 to 13th November 2017, the product is taxable at 12% as per entry no. 4 of Schedule II of Notification No. 1/2017-Integrated Tax (Rate).
- From 14th November 2017 onwards, the product is taxable at 5% as per entry no. 1 of Schedule I of Notification No. 43/2017-Integrated Tax (Rate), provided it is branded.

Conclusion:
- The impugned product is taxable at 12% from 1st July 2017 to 13th November 2017 and at 5% from 14th November 2017 onwards, as it qualifies as a "unit container" and is branded.

Order:
- The questions are answered affirmatively, confirming the taxability of the product as per the specified entries in the relevant notifications.

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