- The Andhra Pradesh Authority for Advance Ruling (AAR) ruled that processed frozen shrimp exported in small pre-packaged and labelled units are subject to GST.
- The taxability is determined by the nature of the packaging (pre-packaged and labelled for retail), not by the fact that the goods are exported.
- The ruling clarifies that individual inner pouches (250g to 2kg) with printed labels are considered retail packs and attract a 5% GST, even if consolidated in larger cartons for export.
- The AAR rejected the exporter’s argument that GST should not apply to exports, emphasizing that packaging for retail sale triggers tax liability.
- This decision clarifies that export status does not exempt pre-packaged retail goods from GST under current law.
Source: taxscan.in
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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