Supply of Frozen Chicken to Indian Army and Ministry of Defence eligible for GST Exemption [Read Order]

The Authority for Advance Ruling (AAR Tamilnadu) in the matter of Abhithanjali Traders has held that the Supply of Frozen Chicken to the Indian Army and Ministry of Defence is eligible for GST Exemption.

M/s Abhithanjali Traders, No.62 1, Kauu Valavu Kilakku, Namagiripct Post, Rasipuram TK, Namakkal, Pincodc 637406 (hereinafter referred Lo as The Applicant), a GST Registrant, is a Partnership firm under the Administrative control of Centre and is engaged in trading of grains and pulses for Feed Industries and Chilled Chicken for customers.

The Applicant submitted a copy of the Electronic Cash Ledger evidencing payment of application fees of Rs.5,000 each under sub-rule (1) of Ruic 104 of CGST Rules 2017 and SGST Rules 2017.

The Questions and Ruling are as follows:

1. Whether the supply of frozen chicken [HSN 02071200 and HSN 02071400] contained in a wholesale bag of 30 kgs containing 15 small packs of 2 kgs each made to institutional consumers is exempted under Sl. No.9 of Notification No.2/2017-CT (R)?

2. Whether the supply of frozen chicken [HSN 02071200 and HSN 02071400] contained in a wholesale bag of 30 kgs containing 15 small packs of 2 kgs each made to a distributor who would further supply to institutional consumers is exempted under Sl. No.9 of Notification No.2/2017-CT (R)?

3. What is the rate of tax for the supply of frozen chicken [HSN 02071200 & HSN 02071400] contained in a wholesale bag of 30 kgs containing 15 small packs of 2 kgs each made to non-institutional consumers?

RULING

(a) Proposed supply of frozen chicken [HSN 02071200 and HSN 02071400] contained in a wholesale bag of 30 kgs containing 15 small packs of 2 kgs each made to institutional consumers in this case, viz., the Indian Army and Ministry of Defence adhering to the provisions Legal Metrology Act, 2009 read with Legal Metrological (Packaged Commodities) Rules, 2011, is eligible for exemption from payment of GST under Sl. No.9 of Notification No.2/2017-CT (Rale) dated 28.06.2017 as amended, if and only if the commodity is for use by that institution and not for commercial or trade purposes is established.

(b) Proposed supply of frozen chicken [HSN 02071200 and HSN 02071400] contained in a wholesale bag of 30 kgs containing 15 small packs of 2 kgs each made by the Applicant, adhering to the provisions Legal Metrology Act, 2009 read with Legal Metrological (Packaged Commodities) Rules, 2011, to a distributor who would further supply to institutional consumers is eligible for exemption under SI.No.9 of Notification No.2/2017-CT (Rate) dated 28.06.2017 as amended, if and only if the commodity is for use by that institution and not for commercial or trade purposes is established, provided the distributor is a wholesale dealer.

(c) For supply of frozen chicken [HSN 02071200 and HSN 02071400] contained in a wholesale bag of 30 kgs containing 15 small packs of 2 kgs each made by the Applicant to non-institutional consumers, GST is payable on the same as per Sl. No.1 of Schedule I to the Notification No.01/2017 – CT (Rate) dated 28.06.2017 as amended.

For Official Ruling Download PDF Given Below: