The Authority for Advance Ruling ( AAR ), Karnataka, has recently in an application filed before it, held that all types of jaggery pre- packed and labelled are exigible to GST at 5%.
The aforesaid observation was made by the Karnataka AAR, when an application was preferred before it by the applicant M/S Prakash and Company, a partnership firm registered under the provisions of Central Goods and Services Tax Act, 2017, as well as the Karnataka Goods and Services Act, 2017.
The facts of the case were that the applicant was a dealer in jaggery which was sold in wrapped loose gunny sheets stitched with thread, weighing in 3 different sizes i.e., 5 kgs, 10kgs and 30kgs.
It was submitted by the applicant via his advocate Sri V.R Desai that jaggery, prior to notification no.06/2022 Central Tax (Rate ), dated 13.07.2022, was totally exempt from tax under section 11(1) of GST Act , bearing Sl no : 94, having HSN Code 1701 or 1702, and that as per notification no.6/2022 Central Tax (Rate),dated 13th July 2022, jaggery of all types including jaggery ( gur), palmyra jaggery, pre- packaged and labelled, khandsari sugar, pre- packed and labelled, has been made taxable at the rate of 2.5% and 2.5% respectively under CGST and SCGST .
Also, it was submitted by the applicant that at para G (ii) of the aforesaid notification , the expression ‘ pre-packaged commodity’, meant a ‘ pre- packed commodity’ as defined in clause (1) of section 2 of the Legal Metrology Act, 2009 (1 of 2010 ) where, the package in which commodity is pre- packed or a label security affixed thereto, is required to bear the declarations under the provisions of legal metrology Act, 2009 of 2010 and the Rules made thereunder.
Further, it was stated by the applicant that as per the aforesaid provision of Metrology Act 2009, none of the provisions were applicable to the Jaggery in which they were dealing, and that the jaggery in which they were dealing were neither pre- packaged or weighed nor labelled, and also that the weight of each lump was not similar and that only their sizes were same, thus making them outside the applicability of notification no.6 /2022 -Central Tax (Rate ), dated 13.07.2022, for the payment of tax.
With the applicant seeking advance ruling on the question as to whether all types of jaggery are covered under the notification no.6 /2022- Central Tax (Rate), dated 13.07.2022, and if yes, the rate of the same, the AAR Panel consisting of Dr. M.P Ravi Prasad, The Additional Commissioner of Commercial Taxes, along with Sri Kiran Reddy T, The Additional Commissioner of Customs and Indirect Taxes, held:
“All types of jaggery, pre-packaged and labelled are covered under S.No 91 A of Notification No .1/2017 Central Tax (Rate) dated 28.06.2017, as amended vide Notification No.6/ 2022 dated 13.7. 2022. Also, all types of jaggery, pre-packaged and labelled are exigible to GST at 5% (CGST at 2.5% and SGST at 2.5%)”
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