Simplified Explanation of Notification No. 3/2024–Central Tax (Rate)
**1. Notification Overview:
This notification updates the rules regarding the GST exemption on certain goods, specifically addressing how agricultural farm produce is treated under GST regulations.
**2. Key Amendment:
**A. Clarification on Agricultural Farm Produce Packaging:
- Current Rule: Previously, agricultural farm produce packaged and labeled according to the Legal Metrology Act was considered “pre-packaged and labelled,” which affected its GST treatment.
- New Proviso Added:
- Proviso Statement: Agricultural farm produce in packages larger than 25 kilograms or 25 liters will not be classified as “pre-packaged and labelled” under GST rules, despite the Legal Metrology Act’s requirements.
**3. Effective Date:
- This change will apply from July 15, 2024.
**4. Examples:
- Example 1: Large Packaging of Agricultural Produce:
- If you buy a bag of rice that weighs 30 kilograms, it will not be considered “pre-packaged and labelled” for GST purposes. Therefore, it is not subject to the same GST rules that apply to smaller, pre-packaged goods.
- Example 2: Packaging Below the Threshold:
- If a package of tomatoes weighs 20 kilograms, it would be classified as “pre-packaged and labelled” and subject to GST rules that apply to pre-packaged goods.
**5. Summary:
- New Rule: Agricultural farm produce packaged in quantities greater than 25 kg or 25 liters is exempt from certain GST labeling requirements.
- Effective Date: July 15, 2024
