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Notification No. 03/2024 | GST on Farm Produce Over 25kg

by | Jul 13, 2024 | GST, 2024 Notifications, Central Tax (Rate) 2024 Notifications, Notifications | 0 comments

Notification No. 03/2024 - Central Tax (Rate)
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Important Keyword: GST on farm produce, Notification No. 03/2024 – Central Tax (Rate), GST exemption agricultural packages, pre-packaged and labelled, GST 25kg rule, GST notification July 2024, Central Tax Notification, GST rates for farmers,

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[F. No. 190354/94/2024-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

New Delhi, the 12th July, 2024

Notification No. 03/2024 – Central Tax (Rate): Seeks to amend notification No. 2/2017- Central Tax (Rate)

GST: [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]

G.S.R   (E).-In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 2/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.674(E), dated the 28th June, 2017, namely:-

In the said notification, after the Schedule, in the Explanation, in clause (ii), after the entries relating thereto, the following proviso shall be inserted, namely:-

“Provided that notwithstanding anything contained in the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder, as amended from time to time, the supply of agricultural farm produce in package(s) of commodities containing quantity of more than 25 kilogram or 25 litre shall not be considered as a supply made within the scope of expression ‘pre-packaged and labelled’.”.

2.         This notification shall come into force from the 15th day of July, 2024.

(Nitish Karnatak)
Under Secretary to the
Government of India

Note: -The principal notification No. 2/2017-Central Tax (Rate), dated the 28th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 674(E), dated the 28th June, 2017, and was last amended vide notification No. 18/2023-Central Tax (Rate) dated the 19th October, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 777(E), dated the 19th October, 2023.

📚 Frequently Asked Questions (FAQs): Notification No. 03/2024 – Central Tax (Rate)

Q1: What is Notification No. 03/2024 – Central Tax (Rate)? 📄

Answer:
Notification No. 03/2024-CT(R) dated 12th July 2024, amends Notification No. 2/2017-CT(R) by providing clarification on the GST applicability to agricultural farm produce. It exempts packages over 25 kg or 25 litres from being treated as “pre-packaged and labelled” under GST law.

Q2: What exactly changed with this notification? 🔁

Answer:
The notification added a proviso to the explanation under Notification 2/2017-CT(R). Now, any agricultural product packed in quantities over 25 kg/litre will not be considered as “pre-packaged and labelled” – hence not taxable under GST, regardless of Legal Metrology Act standards.

Q3: Does this mean large farm packages are GST-free? 🚜

Answer:
Yes ✅. As per Notification 03/2024-CT(R), farm produce in packages over 25 kg or 25 litres are exempt from GST if otherwise qualifying under the scope of agricultural produce, even if such packages are labelled.

Q4: Why was this amendment introduced? 🧩

Answer:
This amendment helps remove confusion around GST applicability to bulk agricultural packaging. It aligns taxation with practical farming practices and ensures farmers and suppliers aren’t unnecessarily burdened by tax on bulk supplies.

Q5: From when is Notification No. 03/2024 effective? 📅

Answer:
The notification is applicable from 15th July 2024.

Q6: What was the principal notification amended? 📘

Answer:
This notification amends Notification No. 2/2017-Central Tax (Rate), which originally defined exempt supplies, especially in the context of agricultural products and related conditions.

Q7: Does Legal Metrology Act still apply to such packages? ⚖️

Answer:
Not for GST purposes. The amendment specifically states that even if a product falls under the Legal Metrology Act definitions, it will not be treated as “pre-packaged and labelled” for GST if it’s over 25kg/litre.

Q8: Who benefits the most from this notification? 🧑‍🌾

Answer:
Agricultural producers, traders, and wholesalers who deal in large quantities of farm goods packaged above the defined limit benefit most, as they are now relieved from the GST compliance burden for such goods.

Q9: How can Finodha help with GST classification or compliance? 🧾

Answer:
Finodha’s team of GST professionals provides in-depth GST advisory and compliance support. Whether it’s dealing with farm goods classification, exemption eligibility, or GST filings, visit GST Compliance: https://finodha.in/gst-compliance/ or consult GST Experts at www.Finodha.in.

Q10: Where can I register for GST if I’m a farm produce aggregator or trader? 📝

Answer:
You can quickly register online through Finodha’s seamless GST registration portal here: https://finodha.in/online-gst-registration/

Q11: Is there a difference in GST treatment for wholesale vs. retail packaging? 🧺

Answer:
Yes. This notification distinguishes between retail-like “pre-packaged and labelled” items and bulk packaging used in wholesale/agriculture. Retail packs under 25kg may attract GST, but bulk packs above that do not under the revised rule.

Q12: How should I prepare my invoicing and tax structure post this notification? 💼

Answer:
Ensure invoices clearly mention pack quantity and align them with the 25kg/litre exemption condition. For a smooth transition, consult Finodha’s GST experts: https://finodha.in/gst-return-filing/

🎯 Summary

Notification No. 03/2024 – Central Tax (Rate) is a significant relief for agricultural suppliers dealing in large-volume packages. By excluding packages above 25kg/litre from the ambit of “pre-packaged and labelled” for GST, it simplifies compliance, reduces tax burden, and supports ease of doing business in agriculture.

Download PDF: Notification No. 03/2024 – Central Tax (Rate)

03_2024_ctr_EngDownload

More Information: https://taxinformation.cbic.gov.in/

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