The West Bengal Authority of Advance Ruling (AAR) has ruled that no goods and service tax (GST) is payable on supply of processed seafood in ‘industrial pack – not for retail sale’ otherwise 5% GST would be applicable on sea food for retail sale.

The bench of Dr Tanisha Dutta and Joyjit Banik has observed that the 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) of chapter II of Legal Metrological (Package Commodities) Rules, 2011. Therefore, if supplied in such a manner as to attract exclusion provided under the said rule 3(c), it will not be considered as pre packaged and labelled for the purposes of GST levy. Hence, if supply of the subject commodity meets the above given conditions, it will not be subjected to GST. In all other cases, it will attract 5% GST.

The applicant, Sravanti Lahiri submits that supply of seafood (frozen), prawn & fish to industrial or institutional customers under rule 2 (buck) of Legal Metrology (Packed Commodities) rules, 2011 and not for retail sale as declared under provisions of Legal Metrology (Packed Commodities) Rules, 2011 (LMR). These packages are not “pre- packed and labelled” as defined under Notification 01/2017 Central Tax (Rate) dated 28.06.2017.

The applicant contention is that supply of seafood items (frozen) like prawn and fish in industrial or institutional customers are exempted under GST as per notification no 7/2022 CTR dated 13/07/2022 read with Rule 3 of Legal Metrology (Packed Commodities) Rules, 2011 (LMR), as amended, and coupled with FAQ issued by CBIC vide F no.-190354/172/2022-TRU dated 17/07/2022.

The applicant sought the advance ruling on the issue whether the supply of processed sea food (frozen) like prawn and fish to industrial or institutional customers in ‘industrial pack-not for retail sale’ is taxable or exempted.

The AAR stated that the goods in question is exempted subject to fulfilment of certain conditions. Otherwise it would attract tax @ 5%. However, in absence of any submission supported by documentary evidences on behalf of the applicant, we are unable to decide whether the applicant supplies the goods in such manner as to attract exclusion provided under the said rule 3(c) of the Legal Metrological (Package Commodities) Rules, 2011. 

‘We therefore refrain to pronounce any ruling.’ the AAR said.

Ruling Details

Applicant Name: Sravanti Lahiri

Date: 27/02/2025

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