GST on supply of unbranded nil rated goods export

Save Share

This query is : Resolved

Quick Summary

A manufacturer producing unbranded, nil-rated wheat flour is seeking clarification on GST implications when supplying to a buyer who then sells to a merchant exporter. The key issue is whether packing the flour in PP bags bearing the exporter's brand, provided by the exporter, constitutes a taxable supply. Initial advice suggests no GST liability as the product itself remains unbranded, but a potential concern has been raised regarding the activity amounting to a supply of branded goods, referencing a relevant AAR decision that requires detailed evaluation.

gmv

gmv (Querist)
Follow

12 November 2020 We are a manufacturer of unbranded nil rated product (wheat flour). We are supplying the product to a buyer . The buyer is supplying the same to a merchant exporter but requires the wheal flour to be packed by us in the packing PP bags containing brand of exporter and the same will be provided by the exporter. In this case is there any GST liability attracted on us and what are the documents required to be taken by us from the exporter.
The product will be exported in UAE.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

12 November 2020 No GST applicable as it's a sale of unbranded wheat flour.

gmv

gmv (Querist)
Follow

12 November 2020 Thank you sir.
But the brand of exporter is printed on PP bags provided by him

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

12 November 2020 You are selling only unbranded. It's only brand of exporter.

Lekhraj sood

Lekhraj sood (Expert)
Follow

13 November 2020 I am afraid that your activity may amount to supply of flour in unit container bearing brand name. Please refer to AAR-MH decision in the case of Aditya Birla Retail. This definitely should be properly evaluated in detail.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now