A kirana Store registered under GST act under regular GST scheme prepacks items such as DAL, CHAWAL, GRAMS etc. of weights of 500 GM and 1 KG and puts a label describing the quantity only for the purpose of propmt delivery to the customer.
My question is whether such Kirana Store is covered under the provisions of LEGAL METRLOGY ACT, reagrding declarations to be made on the pacaking or not AND whether GST is applicable on sale of such packets or not?
Hi, if such Karyana store is engaged in prepacking of items before selling to customers, then yes it is required to make declarations under the provisions of legal metrological act, 2009. However if it is selling loose items or prepacked items that are packed by manufacturer or wholesaler and not itself, then he is exempted from making any declarations.
For second question, yes gst is applicable on sale of such items. As per FAQs released by CBIC, In the context of food items (such as pulses, cereals like rice, wheat, flour etc), the supply of specified pre-packaged food articles would fall within the purview of the definition of 'pre-packaged commodity' under the Legal Metrology Act, 2009, and the rules made thereunder, if such pre-packaged and labelled packages contained a quantity upto 25 kilogram [or 25 litre] in terms of rule 3(a) of Legal Metrology (Packaged Commodities) Rules, 2011, subject to other exclusions provided in the Act and the Rules made thereunder.
Meaning, if dal, chawal, gram etc is prepacked in packages upto 25kg or 25 litre, then it will attract gst @ 5%. However, if package is more than 25 litre or 25kg, then it is exempted from GST.
Hope the above shall suffice.
No label gst not applicable.
R P S K & Associates
Nashik
CA Inter
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