REGARDING 61

[FARIDUDDIN AHMAD]

My client received intimation u/s 61 for the period 2018-19 requiring to provide the details of purchase of packing material from registered/unregistered dealear used for supply of wheats. my client purchase jute bags from unregisterd dealear and used it for packing of wheats. as wheat are exempted in GST , tax invoices are issued without charging GST. my query is whether i have to charge GST on sale of jute bags used for packing of wheat.

AI Summary

GST on Jute Bags for Wheat: Pre-packaged Wheat Attracts 5% GST; Jute Bag Cost Included in Transaction Value. A query was raised regarding the applicability of GST on jute bags used for packing wheat, which is exempt from GST. The discussion highlighted that pre-packaged and labeled wheat is not exempt and attracts 5% GST. It was suggested that the cost of jute bags should be included in the transaction value if wheat is sold in packaged form. The conversation also explored the concept of composite supply under GST, where packing materials are considered part of the principal supply, which is wheat. It was advised to ensure the correctness of the exemption claimed and to understand the implications of Section 61 notices.