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    <title>2023 (2) TMI 1082 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA</title>
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    <description>The Karnataka AAR ruled on GST liability for coir-pith compost sales by registered persons. Coir-pith compost qualifies as organic fertilizer and attracts 5% GST when sold pre-packed and labeled regardless of quantity. Sales in 30kg+ bags without labels are taxable as pre-packaging makes labeling mandatory under Legal Metrology Rules. Sales to nurseries in any quantity attract GST as nurseries don&#039;t qualify as institutional consumers since they purchase for commercial purposes. Only coir-pith compost sold in bags above 50kg is exempt from GST under Rule 3(b) of Legal Metrology Rules 2011.</description>
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    <pubDate>Fri, 17 Feb 2023 00:00:00 +0530</pubDate>
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      <link>https://www.taxtmi.com/caselaws?id=434567</link>
      <description>The Karnataka AAR ruled on GST liability for coir-pith compost sales by registered persons. Coir-pith compost qualifies as organic fertilizer and attracts 5% GST when sold pre-packed and labeled regardless of quantity. Sales in 30kg+ bags without labels are taxable as pre-packaging makes labeling mandatory under Legal Metrology Rules. Sales to nurseries in any quantity attract GST as nurseries don&#039;t qualify as institutional consumers since they purchase for commercial purposes. Only coir-pith compost sold in bags above 50kg is exempt from GST under Rule 3(b) of Legal Metrology Rules 2011.</description>
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      <pubDate>Fri, 17 Feb 2023 00:00:00 +0530</pubDate>
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