KARNATAKA AAR: 5% GST PAYABLE ON PRE-PACKAGED AND LABELLED JAGGERY

The Karnataka High Court of Advance Ruling (AAR) in the case observed and has held that 5% GST on pre-packaged and labeled jaggery.

The two-judge bench comprising of M.P. Ravi Prasad and Kiran Reddy T. founded that all types of jaggery, the pre-packed and the labelled are being covered by S. No. 91A of Notification No. 1/2017 Central Tax (Rate) dated 28.06.2017.

In the present case, the applicant being a partnership firm and is engaged in the sale of jaggery.

Therefore, it has also been stated by the applicant that jaggery is exempt from GST as per SI No. 94 of Notification No. 2/2017-Central Tax (Rate), dated 28.06.2017. It has also been stated by them that as per Notification No. 6/2022-Central Tax (Rate) dated July 13, 2022, jaggery of all types, whrein it is included the cane jaggery (gur), palmyra jaggery, prepackaged and labeled, and Khandsari sugar, pre-packaged and has been labelled, which has been inserted into

Schedule 1-2.5% at Sl. No.91 A under the HSN codes of 1701 and 1702.

It has also been stated by the applicant that the said delay deal in jaggery, which is sold in wrapped, loose gunny sheets stitched with thread and weighing in 3 different sizes, i.e., the 5 kg, the 10 kg, and the 30 kg. Thus, the jaggery is being manufactured by the farmer mainly with sugar cane juice by mixing necessary chemicals in minor portions. The sugarcane juice is being boiled in a big pot and thereafter, the boiled sugarcane juice will be put in 5 kg, 10 kg, and 30 kg pots until it becomes cold, after the cooling process is being over, the said sugarcane juice will be in the form of lumps (jaggery) of either 5 kg, the 10 kg, or the 30 kg. However, the weight of the none of the lumps are comparable and it may be either be more or less by some grams, i.e., the weight is not uniform even though the sizes are the same. It has also been held by the entry 91A says jaggery of all types, including cane jaggery (gur), palm jaggery, pre-packaged and labeled, and Khandsari sugar, pre-packaged and labelled, is exigible to CGST at 2.5%. which means that all types of jaggery that are being prepackaged and labeled are exigible to CGST at 2.5%.