5% GST payable on all pre-packaged and labelled jaggery: Karnataka AAR

All kinds of pre-packaged and labelled jaggery draws five per cent goods and services tax (GST), ruled the Karnataka Authority for Advance Ruling (AAR).

The case relates to a partnership firm selling jaggery as a commission agent. Like many other agricultural commodities, jaggery was exempted from GST until July 18 last year. From that date, labelled and pre-packaged jaggery was brought under GST.

However, the company stated that it deals in jaggery, which is sold in wrapped loose gunny sheets stitched with thread and weighing in three sizes -- 5 kg, 10 kg, etc. It stated that the jaggery lumps