2026 (1) TMI 1555 - AAR - GST

GST on pre-packaged and labelled shrimp exports liable to 5% with export treated as zero-rated inter-state supply

Export of pre-packaged and labelled shrimps up to 25 kg are taxable and treated as zero rated inter-state supplies; the exporter may either export under ... GST applicability on export of pre-packaged and labelled goods - definition of pre-packaged commodity (pre-determined quantity) - interpretation of Legal Metrology Act declarations for packaged commodities - Authority for Advance Ruling, Andhra Pradesh - advance ruling under Section 98 of the CGST Act, 2017 - export treated as inter-State supply and zero-rated supply under IGST - Notification No. 06/2022-CGST (R) dated 13.07.2022 - HELD THAT:- It may be noted that all exports are to be deemed as inter-state supplies', and as per Section 16 of the IGST Act, 2017, export of goods or services or both are to be treated as Zero Rated Supplies'. It may be noted here that the exporter has the option either to export under Bond/Letter of Undertaking without payment of tax and claim refund of unutilised input tax credit or pay IGST at the time of export and claim refund of the same, as the case may be. We find that neither notification no 6/2022 dated 13.07.2022, nor the Legal Metrology Act, 2009 has made any differentiation with regard to applicability of GST on exports of goods/ mentioning of declarations or pre-packed commodities for export. In the instant case, the supply of shrimps in pouches or boxes of upto 25kg, which are duly pre-packaged and labelled as per Legal Metrology Act, 2009 is a taxable supply which is neither exempted nor nil rated supply. As per the Notification no 06/2022 (CT Rate),dated 13th July 2022,GST has been made applicable on supply of such “pre-packaged and labelled” commodities attracting provisions of Legal Metrology Act, 2009.Therefore, where the quantity involved is 25Kgs or less in respect of specified commodities including shrimps (HSN 0306, as per S.No.3 of schedule 1 of notification 09/2025-central tax (rate) dated 17th September 2025) which are pre-packed, they would mandatorily get covered within the ambit of Legal Metrology Act, 2009, and the rules made there under. Accordingly, we are of the considered view that GST would be applicable on the supply of “pre-packaged and labelled” shrimps, weighing upto 25 kgs, and it will be liable for GST @ 5%, irrespective of the fact whether it is for domestic supply or for export outside the country. Export of processed frozen shrimps packaged in printed inner pouches/boxes and placed in printed master cartons up to 25 kg qualifies as 'pre-packaged and labelled' and is liable to GST. Issues: Whether the export of processed frozen shrimps (HSN 0306) packaged in printed inner pouches/boxes and placed in printed master cartons (each up to 25 kg) qualifies as 'pre-packaged and labelled' under the Legal Metrology Act, 2009 and Notification No. 06/2022-CGST (Rate) dated 13.07.2022 and, consequently, is subject to GST.Analysis: The expression 'pre-packaged and labelled' is equated to 'pre-packaged commodity' as defined in clause (l) of Section 2 of the Legal Metrology Act, 2009, which requires that the commodity be placed in a package without the purchaser being present so that the product has a pre-determined quantity and is required to bear declarations under the Legal Metrology Act and the rules thereunder. Notification No. 06/2022-CGT (Rate) (13.07.2022) applies GST to supplies of such 'pre-packaged and labelled' commodities attracting the Legal Metrology provisions. The Authority relied on the applicant's undisputed facts that inner packages are printed and bear pre-determined quantities (ranging from 0.25 kg to 20 kg) and on clarifications (including CBIC FAQs and the Ministry of Finance press release) indicating that individually retail-intended packs contained within larger packages remain pre-packaged for GST purposes. Applying these provisions and clarifications, inner printed pouches/boxes up to 25 kg meet the Legal Metrology definition and Notification No. 06/2022 brings such supplies within the GST net. The Authority therefore treated the supply of such pre-packaged and labelled shrimp (up to 25 kg) as taxable under the GST rate prescribed in the relevant notifications.Conclusion: The export of processed frozen shrimps (HSN 0306) packaged in printed inner pouches/boxes and placed in printed master cartons, where the individual pre-packaged inner units have predetermined quantities up to 25 kg and are required to bear Legal Metrology declarations, is subject to GST; the ruling is in favour of the Revenue (GST applicable at the notified rate).