Pre-packaged and labelled rice drives GST liability, while unbranded broken rice supplied loose remains exempt.

Broken rice classified under heading 1006 was treated as rice for rate purposes, so GST depended on the supply condition rather than the product description alone. Rice supplied as pre-packaged and labelled falls within the 5% taxable entry, while rice supplied otherwise than pre-packaged and labelled is exempt. The expression pre-packaged and labelled was read with the Legal Metrology Act, 2009 and the applicable rules, meaning only supplies meeting that definition attract tax. On that basis, unbranded and non-packaged broken rice is not liable to GST, while pre-packaged and labelled supplies remain taxable at 5%.

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Issues: Whether supply of unbranded and non-packaged broken rice is liable to GST at 5% as pre-packaged and labelled goods, or is exempt when supplied otherwise than pre-packaged and labelled.

Analysis: Broken rice was held to be classifiable under heading 1006 as rice for rate purposes. The applicable rate was linked to the notifications governing rice, under which rice supplied as pre-packaged and labelled attracts tax at 5% while rice supplied other than pre-packaged and labelled is exempt. The expression pre-packaged and labelled was understood by reference to the Legal Metrology Act, 2009 and the applicable rules, so that only supplies meeting that description would fall within the taxable category.

Conclusion: Supply of broken rice is not liable to GST when it is supplied other than pre-packaged and labelled; tax at 5% applies only if it is supplied as pre-packaged and labelled.

Final Conclusion: The ruling answers the referred question in favour of the applicant for supplies made in unbranded and non-packaged form, while preserving taxability where the goods satisfy the pre-packaged and labelled requirement.

Ratio Decidendi: For rice and rice products classified under heading 1006, GST liability depends on whether the supply is pre-packaged and labelled within the meaning of the Legal Metrology framework; absence of that condition keeps the supply outside the taxable 5% entry.

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