Category: Food Processing

1. Rice put up in a unit container and bearing a registered brand name is taxable @5% and tax invoice has to be issued for supply of taxable goods [ Section 31(1) ofthe CGST Act, 2017 read with Rule 46 of the CGST Rules, 2017].
2. For sale of goods exempt from tax i.e. unbranded rice, a bill of supply has to be issued [ Section31(3) (c) of the CGST Act, 2017 read with Rule 49 of the CGST Rules, 2017].

(FAQ 9(v)(d); FOOD PROCESSING)

1. Only from date the registration has been granted.
2. The tax invoice also can be issued from that date only.
3.  Prior to it neither you can issue tax invoice nor charge any tax on the
   invoice.

(FAQ 9(v)(c): FOOD PROCESSING)

1.  A person who takes voluntary registration is entitled to take credit
   of input tax in respect of inputs held in stock and inputs contained in semi–
   finished or finished goods held in stock on the day immediately preceding the date of grant of registration.
2.  Two important points being that the goods in stock must qualify as “input”
   and that the tax paid at the time of its purchase must qualify as “input tax”
   under GST.
3.  Any goods which have been capitalised in the books of account will not be
   treated as an input. Hence credit on computers will not be available if the
   value of the same has been capitalized in the books of accounts. Further, in
   terms of section 18(1)(b) of the CGST Act, 2017, taxes paid on accounting
   software which were acquired before registration will not be available as
   credit since credit is not available in respect of services in such cases. Other
   than that, credit shall be available on CGST/SGST paid on packing materials,
   etc. subject to conditions andrestrictions spelt out in sections 16 to
   18 of CGST Act, 2017.

(FAQ 9 (v) (b) : FOOD PROCESSING)

Yes, a person who takes voluntary registration is entitled to take credit
of input tax in respect of inputs held in stock on the day immediately preceding the date of grant of registration. In this connection, section 18(1)(b) read with section 25(3) of the CGST Act, 2017 refers.

(FAQ 9(v)(a) : FOOD PROCESSING)

1. HSN codes, taxable value, place of supply are required to be recorded in a tax invoice to be issued by a registered person under rule 46 of the CGST Rules, 2017.
2. An unregistered person cannot issue a tax invoice.

(FAQ 9(iv)  : FOOD PROCESSING)

As per Invoice Rules, a registered person supplying taxable goods is required to issue a tax invoice and in case of exempted goods, he is required to issue a bill of supply. As all the contents of bill of supply are included in the tax invoice, a separate bill of supply need not be issued in case of the exempt component. Thus, both branded and unbranded rice can be included in one invoice.

(FAQ-9 (iii) :Food Processing)

As rice put up in a unit container and bearing a registered brand name is taxable @ 5%, the suppliers of branded basmati rice located in other States would be charging IGST @ 5%, whose credit can be availed only when the recipient is registered under the CGST Act, 2017.Therefore, if you want to avail of input tax credit,  you must get yourself registered. That said, for making inter State purchases one is not mandatorily required to be registered.

(FAQ-9 (ii) :Food Processing)

Rice put in a unit container and bearing a registered brand name is taxable @ 5%. In accordance with the provisions of section 22 of the CGST Act, 2017 (applicable in your case), a person becomes liable to be registered in the State/UT from where he makes taxable supply of goods or services or both if his aggregate turnover (which includes value of exempt supplies as well) in a financial year exceeds Rs.20 Lakh. Hence, liability to get registration accrues in your case from the date the aggregate turnover in the current financial year
exceeds Rs.20 lakh.

(FAQ-9 (i) :Food Processing)

Outward supply of these goods if effected without registered brand name is exempt under GST. However , if the outward supply is made under a registered brand name and put up in unit container then it would be liable to tax @ 5%.

(FAQ-8 Food Processing)

No. Such credit is not admissible in case of machinery, being capital goods. As per Section 140 ( 5 ) of the CGST Act, 2017, credit of eligible duties and taxes in respect of only inputs / input services in transit during transition from Pre-GST to Post-GST is allowable. This is subject to the condition that the tax on such supply is paid under the existing law and the recipient records this receipt in his books of accounts within thirty days of the appointed day

(FAQ-7 Food Processing)