The Gujarat Authority of Advance Ruling (AAR) ruled that no GST is applicable on Paneer if it is not put up in tin, jar, bottle, bag, or carton, drum, barrel, or canister to hold a predetermined quantity and Unit container is not bearing brand name.
The applicant, M/s. Jain Dairy Products Pvt. Ltd. is doing business of manufacturing and selling of products of paneer, cheese and other milk products and also trading of other food items. They are registered under the GST Act, 2017.
At present, they are selling Paneer packed in unit container i.e. vacuum pouch (with Brand Name) and also in loose form/in plastic bags without sealing of packet/in loose carry bags and bearing details like name of manufacturer or branches or others as required by the Food Safety and Standards Act, 2006 (FSSAI) or other relevant Acts, to consumers.
The applicant has sought the advance ruling on the issue whether the benefit of exemption of GST at 0% is applicable for the invoices raised to the end use users in case of selling of paneer in loose form without sealing of packet/in loose carry bags and bearing details like name of manufacturer and branches or others as required by FSSAI or other relevant Acts.
The coram consisting of Sanjay Saxena and Mohit Agarwal held that the the benefit of the exemption provided vide entry at Sr. No. 27 of the Notification No.02/2017-Central Tax (Rate) dated 28th June, 2017, as amended, can be extended to the applicant’s product subject to the fulfilment of two conditions.
Firstly, if ‘Paneer’ is not put up in unit container, means a package, whether large or small (for example, tin, can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a predetermined quantity or number, which is indicated on such packages.
Secondly, said unit container is not bearing a registered brand name or a brand name on which an actionable claim or enforceable right in a court of law is available.
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