GST Vidhi | GST Advance Ruling

GST on Export of Pre-Packaged and Labelled Frozen Shrimps – Devi Fisheries Case

In this advance ruling application, M/s Devi Fisheries Ltd, a company engaged in the processing and export of frozen shrimps, sought clarity on the applicability of GST on their export consignments which are packed in individual pouches/boxes and then placed into master cartons. The applicant raised concern regarding whether such exports attract GST after the introduction of Notification No. 06/2022-CT (Rate) dated 13.07.2022, which brought “pre-packaged and labelled” goods under the GST ambit. After considering the packaging methodology, legal provisions, clarifications from the Ministry of Finance, and past rulings, the Authority held that GST is applicable on such exported goods, even if meant for foreign consumers, because the packaging qualifies as “pre-packaged and labelled” under the Legal Metrology Act, 2009, and the weight per package does not exceed 25 kg.

·       Advance Ruling Number: 10/AP/GST/2025

·       Date of Ruling: 21 January 2025

·       Ruling Authority: Authority for Advance Ruling, Andhra Pradesh

·       Name of Applicant: M/s Devi Fisheries Limited

Questions Raised Before the Authority:

1.    Whether the export of processed frozen shrimps (HSN 0306), which are packed in individual printed pouches or boxes and then placed inside a printed master carton (≤ 25 kg), is subject to GST?

2.    Whether such export of processed frozen shrimps falls under the category of “pre-packaged and labelled” goods and thereby attracts GST under Notification No. 06/2022-CT (Rate)?

Relevant Legal Provisions:

• Section 97(2)(b) & (e) – CGST/APGST Act, 2017
• Notification No. 06/2022-Central Tax (Rate), dated 13.07.2022
• Section 2(1) of Legal Metrology Act, 2009
• Rule 3(a) of Legal Metrology (Packaged Commodities) Rules, 2011
• Sections 2(5), 5, 7(5), and 16 of the IGST Act, 2017

Applicant’s Submissions:

• The applicant is in the business of processing shrimps using Individual Quick Freezing (IQF) and Block Freezing techniques.
• The processed frozen shrimps are packed as follows:
• Primary Packaging: Individual pouches or boxes of 250g–2kg.
• Secondary Packaging: Master cartons up to 25kg.
• All packages are printed with product details, customer branding, and specifications.
• The applicant claimed that the Legal Metrology Act applies even to export goods.
• Referred to clarifications issued by the Ministry of Finance (Press Release dated 18.07.2022) confirming taxability if packaging falls under “pre-packaged and labelled” and the weight is ≤ 25kg.
• Relied on earlier rulings:
• M/s Asvini Fisheries Pvt Ltd (AAR Andhra Pradesh)
• M/s Sri Seetharamanjaneya Sortex (AAR Andhra Pradesh)
• M/s DD International Pvt Ltd (AAR Haryana)

Discussion and Findings by AAR:

• The Authority noted that the applicant’s inner packages (250g to 2kg) are pre-packed and labelled as per Legal Metrology standards and qualify for GST.
• The ruling emphasized that:
• Pre-packaged and labelled is defined in clause (1) of Section 2 of the Legal Metrology Act, 2009.
• The applicability of GST does not change for export packaging if the package qualifies under the Legal Metrology rules.
• CBIC FAQs dated 18.07.2022 were relied upon, confirming GST is leviable on multiple retail packages in a master carton when each unit is retail sale-ready and ≤ 25kg.
• No differentiation is made in law between domestic and export goods in this context.

Ruling (Answers to the Questions):

1.    Yes – The export of processed frozen shrimps (HSN 0306), packed in printed pouches or boxes and placed inside master cartons of ≤ 25 kg, is subject to GST.

2.    Yes – Such goods qualify as “pre-packaged and labelled commodities” under the Legal Metrology Act and fall under Notification No. 06/2022-CT (Rate), hence liable to GST @ 5%, even if meant for export.

Conclusion:

The Authority concluded that GST is applicable on the export of processed frozen shrimps packed in retail-style pre-packaged and labelled units of ≤ 25 kg. These qualify as taxable under the Legal Metrology and GST provisions, and the export nature of the transaction does not offer exemption from such classification.

Disclaimer: All the Information is based on the notification, circular advisory and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.

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