GST impact on sale of dried red Chilli procured directly from farmers and sold to wholesalers

[Raam Srinivasan Swaminathan Kalpathi]

A person buys dried red chilli (HSN 09042110) directly from farmers and sells it to wholesalers charging GST of 5%. Is this rate correct?

Secondly, if suppose this person without any branding (not falling under the metrology act) sells the produce (procured from farmers) to wholesalers in gunny bags - would this attract the 5% GST?

Thanks

AI Summary

GST treatment of dried red chilli sales from farmers to wholesalers raises questions on rate and unbranded bagged supply. GST treatment is raised in relation to the sale of dried red chilli procured directly from farmers and supplied to wholesalers. The query concerns whether dried red chilli classified under HSN 09042110 attracts GST at 5% when sold in the ordinary course of trade. A further question asks whether the tax position changes where the same produce is sold to wholesalers in gunny bags without branding and outside the metrology law framework.