GST on pre-packaged and labelled rice remains taxable even for export-linked supplies under the amended notification.

Pre-packaged and labelled rice in quantities up to 25 kg was treated as taxable supply under the amended GST entry in Notification No. 1/2017-Central Tax (Rate), as substituted by Notification No. 06/2022-Central Tax (Rate). The Authority read "pre-packaged and labelled" by reference to the Legal Metrology Act, 2009 and the Legal Metrology (Packaged Commodities) Rules, 2011, and found the packaging and labelling conditions satisfied. It further held that linkage to export does not create a separate GST exemption where the goods otherwise fall within the taxable notification. GST was therefore leviable on the disputed export-linked supplies.

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Issues: Whether GST is leviable on supply and export of pre-packaged and labelled rice up to 25 kg, including supplies made to a foreign buyer, to an exporter on a bill-to-ship-to basis, and to the exporter's factory for onward export.

Analysis: The Authority held that pre-packaged and labelled rice packed in quantities up to 25 kg falls within the amended entry for taxable supply under Notification No. 1/2017-Central Tax (Rate), as substituted by Notification No. 06/2022-Central Tax (Rate). The expression "pre-packaged and labelled" was read with the Legal Metrology Act, 2009 and the Legal Metrology (Packaged Commodities) Rules, 2011, and the Authority treated the packing and labelling requirements as satisfied where the goods were supplied in such packages. The Authority further observed that the GST law does not carve out a separate exemption merely because the supply is linked to export, and that the nature of supply remains taxable where the goods are otherwise covered by the notification and the legal metrology requirements.

Conclusion: GST is leviable on the disputed supplies of pre-packaged and labelled rice up to 25 kg, including export-linked supplies, and the answer is against the applicant.

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