TaxTMI 
TaxTMI 
2025 (9) TMI 1075
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....er shall include a reference to the corresponding provisions of the KSGST Act, Rules and the Notifications issued thereunder. 3. The issues on which advance ruling sought are stated above. 4. Contentions of the Applicant 4.1 The applicant proposes to engage in the trading of poultry meat both whole (not cut into pieces) and in the form of cuts and offal sourced from third parties. The product is supplied in wholesale bags of 30 kg, each containing 15 smaller packs of 2 kg. The packaging clearly states: "Packed exclusively for Institutional Sale and not for Retail Sale." The applicant intends to supply these products to various institutional buyers, such as the Indian Army, Ministry of Defence and Taj Kerala Hotel & Resorts Ltd (Gat....
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....& Resorts Ltd (Gateway, Varkala), is also exempted under the same entry. However, if the same product is supplied to non-institutional consumers, it would attract GST at the rate of 5%, in accordance with Sl. No. 1 of Schedule I to Notification No. 1/2017-Central Tax (Rate), as amended, read with Notification No. 6/2022-Central Tax (Rate) dated 13-07-2022, under HSN 0207, which covers "All goods other than fresh or chilled, pre-packaged and labelled." The applicant has provided detailed reasoning in support of this understanding. 5. Comments of the Jurisdictional Officer The application was forwarded to the jurisdictional officer as per provisions of Section 98 (1) of the CGST Act. The Jurisdictional Officer reported that there are....
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....le offal of poultry, not cut into pieces, frozen; and 02071400 refers to the same item cut into pieces, frozen. The classification adopted appears to be in order. The key questions raised are: I. Whether the supply of this item directly to institutional customers is 'GST exempt from GST? II. Whether the supply of the same item to a distributor, who then supplies it to institutional customers, is also exempt? III. The rate of tax for supply of frozen chicken [HSN0207 1200 & HSN 0207 1400] contained in a wholesale bag of 30 Kgs containing 15 small packs of 2Kgs each when made to non-institutional consumers. 7.3. The applicant proposes to supply frozen chicken to institutional customers, either directly or thro....
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....osition is further supported by the FAQs issued by the Ministry of Finance, Department of Revenue (TRU) vide F. No. 190354/172/2022-TRU dated 17th July 2022. Specifically, FAQ No. 7 clarifies that "Supply of packaged commodity for consumption by industrial consumer or institutional consumer is excluded from the purview of the Legal Metrology Act by virtue of Rule 3(c). Therefore, if supplied in such manner as to attract exclusion under the said rule, it will not be considered as pre-packaged and labelled for the purposes of GST levy." 7.5 Accordingly, even though the items are pre-packed and labelled, their supply to institutional customers like the Army and Taj Hotels does not attract Legal Metrology labelling requirements. As a result,....
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....remain available even where the supply is made through distributors or wholesale dealers, provided the end use is by a qualifying institutional or industrial consumer and all the prescribed conditions are duly fulfilled. 7.7 As per Rule 2(bc) of the Legal Metrology (Packaged Commodities) Rules, 2011, an "institutional consumer" is defined as "the institution which buys packaged commodities bearing a declaration 'not for retail sale', directly from the manufacturer or from an importer or from a wholesale dealer for use by that institution and not for commercial or trade purposes." Similarly, an "industrial consumer" is defined under Rule 2(bb) as one who buys packaged commodities for use by that industry, including for commercial purposes....
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.... above, the following rulings are issued; RULINGS Question No. 1. Whether supply of frozen chicken [HSN 0207 1200 & HSN 0207 1400] contained in a wholesale bag of 30 Kgs containing 15 small packs of 2Kgs each made to institutional consumers such as The Indian Army, Ministry of Defense, and Taj Kerala Hotel & Resorts Ltd(Gateway, Varkala) etc.is exempted vide Sl. No. 9 of Notification 2/2017-CT (R) against HSN 0207, "All goods other than fresh or chilled, other than pre-packaged and labelled"? Ruling-The items in question shall be exempt from GST under Sl. No. 13 of Notification No. 2/2017-Central Tax (Rate) dated 28-06-2017, when supplied to institutional consumers, subject to compliance with the provisions of the Legal Metrology A....