Important Keyword: Notification No. 03/2024- Integrated Tax (Rate), GST on packaged goods, 25kg GST rule, Integrated Tax update, Legal Metrology Act, GST farm produce,
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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 – Integrated Tax (Rate): Seeks to amend notification No. 2/2017 – Integrated Tax (Rate)
[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 6 of the Integrated Goods and Services Tax Act, 2017 (13 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-Integrated 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. 667(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
Note: -The principal notification No. 2/2017-Integrated 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. 667(E), dated the 28th June, 2017, and was last amended vide notification No. 21/2023-Integrated 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. 778(E), dated the 19th October, 2023.
📚 Frequently Asked Questions (FAQs): Notification No. 03/2024 – Integrated Tax (Rate)
Q1: 🧠 What is the core amendment introduced in Notification No. 03/2024-IT(R)?
Answer:
The notification clarifies that agricultural farm produce supplied in packages containing more than 25 kilograms or litres will not be considered “pre-packaged and labelled” under GST—despite what the Legal Metrology Act or its rules suggest.
Q2: 📅 When did Notification No. 03/2024 come into effect?
Answer:
The notification came into force on 15th July 2024.
Q3: 📦 How does this affect traders of farm produce?
Answer:
Wholesalers, distributors, and suppliers of farm goods in larger packages (above 25kg or 25L) can now avoid GST liability for such supplies, as these are exempt from the definition of “pre-packaged and labelled” under GST.
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Q4: 🧾 What was the legal issue around GST on large packages?
Answer:
Previously, due to overlapping definitions between GST rules and the Legal Metrology Act, even larger quantity packaged goods could be deemed taxable. This caused confusion and potential litigation.
Now, Notification No. 03/2024 eliminates that ambiguity.
Q5: 👨🌾 Is this applicable to both B2B and B2C transactions?
Answer:
The biggest beneficiaries include:
Agricultural produce traders
Warehousing companies
Logistics firms
Farm-to-market operators
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Q6: 🧑💼 Who benefits from this clarification?
Answer:
The biggest beneficiaries include:
Agricultural produce traders
Warehousing companies
Logistics firms
Farm-to-market operators
✨ Explore company setup options for agri-business: Start a Business
Q7: 📜 Does this affect the GST on packages below 25kg/25L?
Answer:
No. Packages containing 25kg/25L or less continue to fall under “pre-packaged and labelled” goods and are liable for GST.
Q8: 📚 What does the phrase “notwithstanding anything contained…” imply?
Answer:
This legal phrasing means the GST clarification will override any contradictory provision in the Legal Metrology Act or its Rules regarding packaging thresholds.
🧮 Summary of Notification 03/2024 – IT(R)
| Criteria | Applicability of GST |
|---|---|
| Package Size ≤ 25kg/25L | ✅ GST Applicable |
| Package Size > 25kg/25L | ❌ GST Not Applicable (exempt) |
| Law Previously in Conflict | Legal Metrology Act |
| Now Clarified Under GST? | ✅ Yes, from 15 July 2024 |
🔗 Related Resources
- 📥 GST Return Filing
- 🏢 Private Limited Registration
- 📲 Get Digital Signature Certificate (DSC)
- 🌱 Register as MSME (Udyam)
🏁 Final Thoughts
Notification No. 03/2024-Integrated Tax (Rate) brings much-needed clarity for agri-commodity suppliers. It provides relief from GST compliance on bulk sales (packages > 25kg or 25L), supporting farmers, traders, and the warehousing ecosystem.
💬 Have more questions? Consult a GST Expert at Finodha today!
Download PDF: Notification No. 03/2024 – Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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