Facts –

• The applicant, M/s D D International Pvt. Ltd, is engaged in the business of manufacturing and supplying rice to customers in pre-packaged and labelled packages, having a quantity of up to 25 kilograms.
• The supplier of packing material dispatches the printed/labelled empty bags, having capacity up to 25 kgs, to the applicant's premises. The applicant packs the rice in these bags in their factory and exports it to foreign buyers or dispatches the pre-packaged rice to the customs port or factory of the exporter.

Issue –

• Whether GST would be leviable on export of pre-packaged and labelled rice upto 25 Kgs, to foreign buyer?
• Whether GST would be applicable on supply of pre-packaged and labelled rice upto 25 Kgs, to exporter on "bill to ship to" basis i.e., bill to exporter and ship to customs port. Exporter ultimately exports the rice to foreign buyer?
• Whether GST would be applicable on supply of pre-packaged and labelled rice upto 25 Kgs, to the factory of exporter. Exporter will export the rice?

Order –

• The authorities observed that the legislature intention is that the supply of the rice in packets of upto 25 Kg which are duly pre-packaged and labelled as per the Legal Metrology Act, 2009(1 of 2010) and the rules made thereunder is an taxable.
• In the present matter if supplied goods are pre-packaged and labelled and in the packages of less than or equal to 25 kg in quantity then the same are taxable. 
• Further, the scope of supply under the GST Act is an all encompassing event and only goods and services which have been categorically declared as non-taxable/exempted/nil rated supplies under the Act are outside the purview of the section 7 of the CGST Act. 
• Therefore, the supplies made by the applicant are taxable under GST at the rate of 5%.