Frozen whole (Sheep/Goat) carcass packaging not a "unit container" for GST exemption.

The Authority concluded that the whole (Sheep/Goat) animal carcass in its natural shape in frozen state, packed in LDPE bags without mentioning the weight and further packed in HDPE bags, does not qualify as a product put up in a "unit container." Consequently, the products mentioned in the case are exempt from GST as they do not meet the criteria of "unit containers" and fall under the exemption list as per specific notifications.

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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 a product put up in a “unit container.”
2. Whether the products as mentioned in query 1 shall be taxable under GST as per entry no. 4 of schedule II of the Notification no. 1/2017-Integrated Tax (Rate) dated 28th June 2017 up to 14th November 2017 and thereafter as per entry no. 1 of schedule I of the Notification No. 43/2017-Integrated Tax (Rate) dated 14th November 2017 or fall under exemption list as per entry no 10 of Notification No. 2/2017-Integrated Tax (Rate) New Delhi dated 28th June 2017 up to 14th November 2017 and thereafter as per entry no. 9 of the Notification No. 44/2017-Integrated Tax (Rate) dated 14th November 2017.

Detailed Analysis:

Issue 1: Qualification as "Unit Container"
The applicant, M/S Monrovia Leasing and Finance Pvt. Ltd., supplies whole (Sheep/Goat) animal carcass in its natural shape in frozen state, packed in LDPE bags without mentioning the weight, and further packed in HDPE bags, to the Army. The key consideration is whether this packaging qualifies as a "unit container" under GST law.

Applicant's Contention:
The applicant argues that their packaging does not qualify as a "unit container" because:
- The LDPE bags are not sealed and do not mention the weight.
- The HDPE bags also do not mention the weight.
- The invoicing is done based on the entire weight of the lot, not on individual bags.
- The definition of "unit container" implies a package designed to hold a predetermined quantity, which is not the case here as the weights vary.

Authority's Observation:
The Authority noted that:
- The term "unit container" as per the GST notifications means a package designed to hold a predetermined quantity, which is indicated on such package.
- The applicant's packaging does not indicate the weight or number of carcasses, thus failing to meet the criteria of a "unit container."

Conclusion on Issue 1:
The Authority concluded that the whole (Sheep/Goat) animal carcass in its natural shape in frozen state, packed in LDPE bags without mentioning the weight and further packed in HDPE bags, does not qualify as a product put up in a “unit container.”

Issue 2: Taxability under GST
The second issue is whether the products mentioned in query 1 are taxable under GST or fall under the exemption list.

Applicant's Contention:
The applicant contends that:
- The products do not qualify as "unit containers" and therefore should not be subject to GST.
- They provided references to various notifications and judicial pronouncements to support their view.

Authority's Observation:
The Authority examined the relevant notifications and found:
- From 1st July 2017 to 14th November 2017, the product would be taxable at 12% if it was put up in "unit containers."
- From 15th November 2017 onwards, the product would be taxable at 5% if it was put up in "unit containers" and branded.
- Since the product does not meet the definition of "unit container," it falls under the exemption list as per entry no. 10 of Notification No. 2/2017-Integrated Tax (Rate) dated 28th June 2017 up to 14th November 2017 and thereafter as per entry no. 9 of the Notification No. 44/2017-Integrated Tax (Rate) dated 14th November 2017.

Conclusion on Issue 2:
The Authority concluded that the products mentioned in query 1 are exempt from GST as they do not qualify as "unit containers."

Final Order:
1. 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 the Army by the applicant against tender does not qualify as a product put up in a “unit container.”
2. The impugned product would be covered by Notification No. 2/2017-Integrated Tax (Rate) dated 28th June 2017 as amended by serial no. 9 of the Notification No. 44/2017-Integrated Tax (Rate) dated 14th November 2017 and would be exempt from the whole of GST.

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