Gst on unbranded rice

Your client is registered trader or not

@ Srikumar Sir,

If the Rice is being sold under a Registered Brand Name ( like India Gate, Fortune etc ), then it is Taxable. The applicable Rate of GST is 5%.

However if no Brand Name is associated ( Non-Brand Items ), then it is EXEMPTED vide Notification No. 2/2017 - Central Tax ( Rate ), dated 28.06.2017. GST Not applicable. It's an Exempt Supply. Moreover as per the Provision of Section 23(1) of the CGST Act 2017, Person's dealing in Exclusive Supply of Exempt Goods are not liable to take GST Registration.

Regards,
Shivam RC.

He is trader, also sell other goods like milk, rice, organic foods

Then if his Aggregate Turnover exceeds Rs. 40 lakhs ( assuming him to be dealing in EXCLUSIVE SUPPLY OF GOODS ), he has to opt for GST Registration. Aggregate Turnover includes both Exempt as well as Taxable Supplies.

Taxable and exempt turnover was 8 lakhs

Then not required to take GST Registration

He already registered at fy 17-18 ,

Then the Trader needs to collect GST on Goods supplied by him according to the GST Rates prescribed under Notification No. 1/2017 - Central Tax ( Rate ), dated 28th June 2017 as amended from time to time.

For Exempted Goods, he will not collect GST. He needs to issue Invoice cum Bill of Supply when both Taxable and Exempted Goods are supplied together.

As far as the Rice is concerned, as replied earlier if it is Branded Rice then GST @ 5% is applicable. If Non-Branded Rice, No GST applicable.

Sales to end user i.e. public people by cash sales by raise invoice with gst and exempt goods also

Unbranded Rice is Exempted in GST.
(Refer S.no.70 under Notification 2/2017 CT (R) )

Thanks sir

Let's us understand the situation with the help of an example :

SAMPLE TAX INVOICE CUM BILL OF SUPPLY :

A2Z Traders
GSTIN : 19AANFN4054D1Z2
Date : 07.06.2020.

1). Unbranded Rice (5kg ) @ GST 0% = Rs. 150
2). Branded Rice ( say Fortune ) @ GST 5% = Rs. 250.
3). Branded Dal ( Tata Sampanna ) @ GST 5% = Rs. 140.
4). Pappad @ GST 0% = Rs. 50/-

Total Amount = Rs. 590/-
CGST @ 5% (say) = Rs. 50.
SGST @ 5% (say) = Rs. 50.

Understood Sir ???

For Taxable goods charge the applicable Rate of GST whereas for Exempt Goods, no GST will be charged.

Ok very well sir

You need not collect GST and options under section 10 is fit for you