CBIC exempts Agricultural Farm Produces more than 25 Kg/ 25 Litres from GST as ‘Pre-Packaged’ and ‘Labelled’

The Central Board of Indirect Taxes and Customs (CBIC) has exempted agricultural farm produce in packages exceeding 25 kg or 25 liters from the Goods and Services Tax (GST). This decision clarifies that only pre-packaged and labeled items up to these limits will attract a 5% GST. If a retailer supplies these items in loose quantities from a larger package, GST will not apply. This exemption aims to ease the burden on farmers and ensure that larger bulk sales do not incur the tax, aligning with the Legal Metrology Act, 2009. This update broadens the GST scope but excludes bulk, unbranded agricultural goods from the tax net.