Export of pre-packaged frozen shrimp in printed inner packs is taxable: GST applies at 5% even for exports.

Pre-printed inner packaging with a predetermined quantity renders frozen shrimp packages 'pre-packaged and labelled' under the Legal Metrology Act, irrespective of outer carton printing; therefore such packages intended for supply - including exports - fall within the Notification's ambit and constitute a taxable supply. Where specified commodities in pre-packed containers meet the prescribed packaging-weight threshold for treatment as pre-packaged goods, the supply attracts GST at the prescribed rate (stated here as 5%), and is not exempt or nil-rated solely because it is exported. The ruling treats pre-packaged inner containers placed in master cartons up to the stated threshold as liable to GST.

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Issues: Whether export of processed frozen shrimps (HSN 0306) packaged in individual printed pouches/boxes and placed in printed master cartons (each up to 25 kg) that are pre packaged and labelled within the meaning of the Legal Metrology Act, 2009, is subject to GST.

Analysis: The Authority examined the statutory definitions and notifications governing GST and legal metrology. Export of goods is treated as inter state supply under the IGST Act, 2017 and exports are zero rated in principle, subject to the applicable notifications and definitions. Notification No. 06/2022-Central Tax (Rate) dated 13.07.2022 amended GST levy entries to apply to goods that are "pre packaged and labelled" as defined by Section 2(l) of the Legal Metrology Act, 2009 and the Legal Metrology (Packaged Commodities) Rules, 2011 (including Rule 3(a) thresholds). The Authority applied the definition of "pre packaged commodity" and the CBIC FAQs clarifying that multiple retail packages intended for eventual retail sale fall within the scope. The applicant's inner retail packages (ranging 0.25 kg to 20 kg) are pre packed with predetermined quantities and bear required declarations/labels, thereby meeting the Legal Metrology definition and the Explanation to the Notification. The Authority noted no exemption in the Notification or the Legal Metrology Act distinguishing export packing; where the commodity and packaging fall within the statutory definition and thresholds ( 25 kg), GST applicability follows the amended rate notification.

Conclusion: Export of processed frozen shrimps (HSN 0306) packaged in individual printed pouches or boxes and placed inside printed master cartons up to 25 kilograms each, which are pre packaged and labelled within the meaning of Section 2(l) of the Legal Metrology Act, 2009 and related rules, is liable to GST at the rate prescribed (5%).

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