MANU/AR/0021/2023

BEFORE THE AUTHORITY FOR ADVANCE RULINGS (GOODS AND SERVICES TAX)
KARNATAKA
Advance Ruling No. KAR ADRG 10/2023
Decided On: 17.02.2023
Appellants: In Re: Sri Lakshminarasimha Agro Products
Hon'ble Judges/Coram:
Dr. M.P. Ravi Prasad, Member (SGST) and Kiran Reddy T., Member (CGST)
Counsels:
For Appellant/Petitioner/Plaintiff: Y.C. Shivakumar, Advocate
Goods and Services:
Dealer
Nature of Issue Involved:
Liability to Pay Tax; Applicability of GST
ORDER
ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 & UNDER SECTION 98(4) OF
THE KGST ACT, 2017
1. M/s. Sri Lakshminarasimha Agro Products, (hereinafter referred to as The applicant')
No. 57/2, Marasandra Village, Kanasavadi Post, Doddaballapur Taluk, Bengaluru Rural
District-561203 having GSTIN 29ACEFS3506K1ZW have filed an application for Advance
Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and
Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules 2017, in FORM GST
ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act.
2. The Applicant is a Partnership firm registered under the provisions of Central Goods
and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017
(hereinafter referred to as the CGST Act and KGST/SGST Act respectively). The
Applicant is engaged in supply of coir pith compost. The Applicant states that he
purchases coir pith and then the same is processed and converted into either
'Decomposed coir pith compost' or 'Sterilized coir pith compost' which is used as
manure for agriculture and horticultural crops.
3. The applicant has sought advance ruling in respect of the following questions:
i. Whether Notification No. 7/2022-Central Tax (Rate) :
MANU/GSCT/0007/2022, dated 13-07-2022 applies to Coir-Pith Compost (HSN
53050040) mentioned in serial number 132-A of the Notification No. 2/2017-
Central Tax (Rate) dated 28-06-2017 as amended vide notification No.
19/2018-Central Tax (Rate) : MANU/GSCT/0019/2018, dated 26-07-2018?
ii. The registered person sells coir-pith compost in 30 kg and above quantity
bags with un-registered brand name "SURYA". In such cases, whether the
registered person is liable to tax under the GST Acts?

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 iii. If the coir-pith compost in 30kg and above quantity bags are sold without
any label (in plain bags), whether would it attract GST?
iv. If the registered person sells coir-pith compost in 25 kg and less pre-packed
and labelled bags to nurseries who buys for consumption, whether in such
cases GST is payable?
v. Whether the nurseries, who are un-registered dealers, come under the
definition of "Institutional consumers"?
vi. If the registered persons sells coir-pith compost with 30Kg and above pre-
packed and labelled bags to nurseries who buys for consumption, whether in
such cases GST is payable?
vii. Rule 3(b) of Legal Metrology (Packaged commodities) Rules, 2011, provides
that the provisions of Chapter II of that Rules shall not apply to cement,
fertilizers and agricultural farm produce sold in above 50 kg bags. Whether the
coir-pith compost, which is also the bio-fertilizer, sold by the registered person,
falls under this category and exempt from GST?
4 . Admissibility of the application: The question is about the "applicability of a
notification issued under the provisions of this Act" and "determination of the liability to
pay tax on any goods or services or both" and hence is admissible under Section 97(2)
(b) and (e) of the CGST Act 2017.
5. BRIEF FACTS OF THE CASE: The applicant furnishes some facts relevant to the issue:
5.1 The applicant states that they are engaged in purchase of coir pith from
registered and unregistered dealers. The said coir pith is processed and
converted into either "De-composed Coir Pith Compost" or "Sterilized Coir Pith
Compost" which is organic manure black in colour. This compost is used as
manure for growing agriculture and horticulture crops including usage in
nurseries. This 'Coir-pith' thus undergoes the process of de-composition and
turn into' Coir-pith compost' and exempt from tax.
5.2 The applicant states that the coir-pith compost is exempt from 26-07-2018
as per serial number 132-A of the Notification No. 19/2018-Central tax (Rate) :
MANU/GSCT/0019/2018 dated 26-07-2018 read with Notification No. 2/2017-
Central Tax (Rate), dated 28-06-2017, provided the registered person foregoes
voluntarily any actionable claim or enforceable right in respect of such brand
name. They have an unregistered brand-name "SURYA". Therefore, to claim
exemption from tax, they have filed an affidavit dated 01-06-2022 with Central
Tax Authorities foregoing voluntarily for any actionable claim or enforceable
right.
5.3 The applicant states that the Notification No. 7/2022-Central Tax (Rate),
dated 13-07-2018, entry 132-A of Notification No. 2/2017-Central Tax (Rate),
dated 28-06-2017 has been amended (so as to delete the provisions relating to
putting up the same in unit container and bearing a registered brand name or
bearing brand name in which an actionable claim or enforceable right in a court
of law available or to claim exemption when such right for an actionable claim
or enforceable right is foregone completely) so as to make it exemption only to
those which are "other than pre-packaged and labelled". They submit that the
coir-pith compost with pre-packaged and labelled is taxable and other than the

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pre-packaged and labelled is exempt from tax.
5 .4 The applicant states that they sell the product ("De-composed coir-pith
compost" and "sterilized coir-pith compost") to both industrial consumers and
institutional buyers and in some cases to retail buyers.
5.5. The applicant states the process adopted in producing coir-pith compost as
follows
5.5.1 Processing of 'Coir-pith compost' from 'Coir-pith':
Coir-pith contains constituents like lignin (30%) and cellulose (26%),
which do not degrade quickly but can be decomposed by employing the
Gypsum powder with urea supplementation. At the end of the
composting period, the coir pith is changed into a well-decomposed
black mass. The C:N ratio is reduced to nearly 24:1 with the N content
enhanced from 0.26 to 1.06%. The advantages of coir pith compost
over other compost materials are it adds micronutrient to the soil which
enhances microbial activity and reduces soil erosion. In addition to the
higher moisture content, coir pith compost is known to supply micro
and secondary nutrients such as magnesium, sulphur, calcium besides
nitrogen, phosphorous and potassium.
5.5.2 Process adopted by the applicant:
Step 1: Uniformly spreading of Ten ton of coir-pith over a flat land.
Step 2: Careful mixing of 75kg Urea into Coir-pith so that urea is
uniformly covered to entire mass.
Step 3: Careful mixing of 100kg Gypsum into coir pith so that Gypsum
is uniformly to entire mass.
Step 4: After proportionate mixing of Urea and Gypsum into coir pith,
watering on the surface of the mixed mass will be undertaken.
Sufficient moisture should be ensured for speedy decomposition in this
composting process. To ensure the moisture content at all times, the
mixture will be wetted initially and again when necessary during the
composting process. Air must be supplied to all parts of the heap so
that oxygen can get to the microorganisms and flush out the CO2
produced.
When the heap begins the composting process the material becomes
slightly acidic, as the simple organic acids are the first to break down.
It then turns slightly alkaline as proteins are attacked and ammonia
released. It takes nearly ten to twelve months for complete
decomposition of coir pith indicated when its colour changes to black.
Step 5: The mixed heap will be kept for decomposition process as it is
for a period of 10 to 12 months till the change of colour from brown to
black. At the end, the entire coir pith converts as organic coir pith
compost.
Step 6: Since some buyers require sterilized coir-pith compost, the

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 applicant sterilizes the same by passing through sterilization process by
layer wise blowing steam accurately (hot air of 80 degrees centigrade).
After the process, the sterilized coir pith compost will be formed in
black colour. The sterilized coir pith compost (invoiced as S.G. Coir
pith compost) will be supplied whoever requires it. Otherwise, they
supply 'De-composed coir pith compost' (invoiced as D.C. Coir-Pith
Compost).
Coir pith Compost is a good source of organic manure for dry land
agriculture and Horticulture as it can absorb water five times its weight
and thereby when applied to soil increase the water holding capacity of
soil.
5.6 The applicant states that, having purchased coir pith (which is brownish in
colour) from registered and un-registered dealers, it is converted into either
'De-composed coir pith compost' or 'Sterilized coir pith compost' which is black
in colour. The 'Coir-pith' thus undergoes the process of de-composition and
becomes 'coir-pith compost' and exempt from tax.
5.7 The applicant states that presently they are selling these products in 30kg
and above quantity pre-packaged and labelled bags. Hence the same is not
liable for GST as provided under the notification No. 7/2022-Central Tax (Rate)
: MANU/GSCT/0007/2022, dated 13th July 2022, read with relevant provisions
of the Legal Metrology Act, 2009 and The Legal Metrology (Packaged
Commodities) Rules, 2011. Thus, they are not levying and collecting GST on
these produce.
However, Rule 3 (Chapter II) of the Legal Metrology (Packaged Commodities) Rules,
2011 provides that the provisions of Chapter II shall not apply to-
(a) Packages and commodities containing quantity of more than 25 kilograms
or 25 litres;
(b) Cement, fertilizer and agricultural farm produce sold in bags above 50
kilograms; and
(c) Packaged commodities meant for industrial consumers or institutional
consumers.
Thus, they are of the view whether the finished product, i.e, 'coir-pith compost' can be
called fertilizer' or agricultural farm product since the same is derived from coconut.
Secondly, they also sell their produce to some of the Industrial consumers' and
'institutional consumers' who use it for themselves. The Registered person wants to
know whether in such cases, the produce sold is exempt from tax if the package is less
than 25kg or 50kg and mentioned as "not for retail sale".
6. Applicant's Interpretation of Law:
6.1 The applicant is of the opinion that the said goods, coir pith compost, if
sold in prepackaged and labelled bags of 25 kg and less, it is taxable and if
sold in pre-packaged and labelled bags of 30 kg and above, it is exempt, as per
notification No. 7/2022-Central Tax (Rate) : MANU/GSCT/0007/2022, dated 13-
07-2022.

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 6.2 The applicant is of the view that even if the pre-packaged and labelled bags
with 30 kgs and above contain the un-registered brand name "SURYA", it is
exempt from tax as per notification no. 7/2022-Central Tax (Rate) :
MANU/GSCT/0007/2022, dated 13-07-2022.
6.3 The applicant is of the view that if the coir-pith compost sold in 30 kg and
above plain bags (without any brand-name or label) is exempt as per
notification No. 7/2022-Central Tax (Rate) : MANU/GSCT/0007/2022, dated 13-
07-2022.
6.4 The applicant is of the view that the sales of coir-pith compost made to
nurseries, though un-registered dealers, is exempt from GST as per rule 3(c) of
Legal Metrology (Packaged Commodities) Rules, 2011. The said rule envisages
that the provisions of that Chapter shall not apply to packaged commodities
meant for industrial consumers and institutional consumers.
6.5 The applicant is of the opinion that the nurseries, which are un-registered
dealers and buy coir-pith compost for their use, are nothing but institutional
consumers. As provided under Rule 3 of the Legal Metrology (Packaged
commodities) Rules, 2011, the said Chapter 3 does not apply to Nurseries.
6.6 The applicant is of the view that the sale of coir-pith compost with 30 kg
and above pre-packed and labelled bags to nurseries who buys for
consumption, such sales are exempt as per notification No. 7/2022-Central Tax
(Rate) : MANU/GSCT/0007/2022, dated 13-07-2022.
6.7 The applicant submits that the coir-pith compost is a fertilizer' and also
'agricultural farm produce' as provided under Rule 3(b) of Chapter II of Legal
Metrology (Packaged Commodities) Rules, 2011. In such cases, the applicant to
get exemption from GST as per notification number 7/2022-Central Tax (Rate) :
MANU/GSCT/0007/2022, dated 13-07-2022, needs to sell the goods in 50kg
above pre-packaged and labelled bags.
6.8 The applicant states that there is difference between fertilizer and organic
manure and coir pith compost being organic manure has to be distinguished
from fertilizer. The applicant has requested to keep this in view and issue the
advance ruling.
PERSONAL HEARING/PROCEEDINGS HELD ON 18-08-2022
7 . Sri Y.C. Shivakumar, Advocate and Duly Authorised Representative appeared for
personal hearing proceedings held on 18-08-2022 and reiterated the facts narrated in
their application.
FINDINGS & DISCUSSION
8 . At the outset we would like to make it clear that the provisions of CGST Act, 2017
and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter
and differ from each other only on a few specific provisions. Therefore, unless a
mention is particularly made to such dissimilar provisions, a reference to the CGST Act
would also mean reference to the corresponding similar provisions in the KGST Act.
9 . We have considered the submissions made by the applicant in their application for
advance ruling. We have also considered the issues involved on which advance ruling is

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sought by the applicant and the relevant facts along with the arguments made by their
authorized representative and also their submissions made during the time of hearing.
10. The Applicant is engaged in supply of coir pith compost. The Applicant states that
he purchases coir pith and then it is mixed with urea and gypsum and then the same is
processed and converted into either 'De-composed coir pith compost' or 'Sterilized coir
pith compost' which is used as manure for agriculture and horticultural crops.
11. Now we proceed to answer first question. In this regard we invite reference to entry
No. 132A of Notification No. 2/2017-Central Tax (Rate) dated: 28.06.2017 amended by
Notification No. 19/2018-Central Tax(Rate) : MANU/GSCT/0019/2018 dated:
26.07.2018 which is as below:

This entry was amended vide Notification No. 7/2022 Central Tax (Rate) :
MANU/GSCT/0007/2022 dated 13.07.2022 as below:
(xiv) against S. No. 132A, in column (3), for the portion beginning with the
words "other than those put up" and ending with the words "as in the
ANNEXURE I)", the words, "other than pre-packaged and labelled" shall be
substituted;
(B) after the Schedule, in the Explanation, for clause (ii), the following clause
shall be substituted, namely:-
"(ii) The expression 'pre-packaged and labelled' means a 'pre-packaged
commodity' as defined in clauses (1) of section 2 of the Legal
Metrology Act, 2009 (1 of 2010) where, the package in which the
commodity is prepacked or a label securely affixed thereto is required
to bear the declarations under the provisions of the Legal Metrology
Act, 2009 (1 of 2010) and the rules made thereunder.".
Thus entry 132A of Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 as
amended by Notification No. 7/2022-Central Tax (Rate) : MANU/GSCT/0007/2022,
dated 13-07-2022 applies to Coir-Pith Compost other than pre-packaged and labelled.
12. Now we proceed to answer second question. The Applicant states that he sells coir
pith compost in a sack of 30 kg and above with unregistered brand name 'SURYA' and
wants to know the taxability on the same. In this regard we invite reference to entry No.
215 of Notification No. 1/2017-Central Tax(Rate) : MANU/GSCT/0001/2017 dated:
28.06.2017 amended by Notification No. 18/2018-Central Tax(Rate) :

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MANU/GSCT/0018/2018 dated: 26.07.2018 and the same is reproduced below:
(A) in Schedule I - 2.5%,
(iv) in S. No. 215, in the entry in column (3), the comma and words", including
coir pith compost put up in unit container and bearing a brand name" shall be
inserted at the end;
This entry is again amended vide Notification No. 6/2022-Central Tax (Rate) :
MANU/GSCT/0006/2022, dated 13.07.2022 as below:
B. in Schedule I- 2.5%,
(xvi) against S. No. 215, in column (3), for the words "put up in unit container
and bearing a brand name", the words ", pre-packaged and labelled" shall be
substituted;
...
...
G. after the Schedule VII, in the Explanation, for clause (ii) and the entries
relating thereto, the following clause shall be substituted, namely:-
'(ii) The expression 'pre-packaged and labelled' means a 'pre-packaged
commodity' as defined in clause (1) of section 2 of the Legal Metrology
Act, 2009 (1 of 2010) where, the package in which the commodity is
pre-packed or a label securely affixed thereto is required to bear the
declarations under the provisions of the Legal Metrology Act, 2009 (1
of 2010) and the rules made thereunder.'.
12.1. In this regard we invite reference to section 2(1) of The Legal Metrology Act,
2009 which is as below:
(1) "pre-packaged commodity" means a commodity which without the
purchaser being present is placed in a package of whatever nature, whether
sealed or not, so that the product contained therein has a predetermined
quantity;
Now we invite reference to Chapter-II of The Legal Metrology (Packaged Commodities)
Rules, 2011 which is about provisions applicable to packages intended for retail sale.
Rule 3 of The Legal Metrology (Packaged Commodities) Rules, 2011, deals with
Applicability of the chapter and the same is reproduced below:
3. Applicability of the Chapter-
The provisions of this Chapter shall not apply to,-
(a) packages of commodities containing quantity of more than
25 kg or 25 litre excluding cement and fertilizer sold in bags
up to 50 kg; and
(b) packaged commodities meant for industrial consumers or
institutional consumers.

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This means that the provisions of Chapter II of The Legal Metrology (Packaged
Commodities) Rules, 2011 applies to cement and fertilizers even though they are sold in
bags up to 50 Kg.
12.2. Now let us examine whether coir pith compost is a fertilizer. In this regard we
invite reference to the definition of 'Fertiliser' and 'Organic Fertiliser' as per Fertiliser
(Control) Order 1985, issued by Department of Agriculture and Rural Development,
Government of India, and the same is reproduced below:
(h) "fertilizer" means any substance used or intended to be used as a fertilizer
of the soil and/or crop and specified in Part A of Schedule I and includes a
mixture of fertilizer and special mixture of fertilisers provisional fertilizer,
customized fertilizer, Bio-fertilizers specified in Schedule III and Organic
fertilizers specified in Schedule IV;
(oo) "Organic fertilizer" means substances made up of one or more
unprocessed material (s) of a biological nature (plant/animal) and may include
unprocessed mineral materials that have been altered through microbiological
decomposition process;
The Process adopted by the applicant in manufacturing coir pith compost is narrated in
detail in para 5.5.2 supra. The Applicant states that coir pith compost is manufactured
by mixing coir pith with required amount of urea and Gypsum and watering the same
for speedy decomposition; that the mixture will be kept for decomposition process for a
period of 10 to 12 months till the colour changes from brown to black and then they get
coir pith compost.
In view of the definition of organic fertilizer mentioned above and the process adopted
by the applicant to manufacture coir pith compost, we can say that coir pith compost is
an organic fertilizer which is covered under the definition of Fertilizer mentioned above
i.e., organic fertilizer is a subset of fertilizer.
The Applicant in his additional submissions has stated that there is difference between
fertilizer and organic manure and coir pith compost being organic manure has to be
distinguished from fertilizer. Now let us see what the definition of Manure is.
1. As per Tamilnadu Agricultural University website(https://agritech.tnau.ac.in)
'Manures are the organic materials derived from animal, human and plant
residues which contain plant nutrients in complex organic forms. Naturally
occurring or synthetic chemicals containing plant nutrients are called fertilizers.'
2. As per https://www.collinsdictionary.com manure is 'any natural or artificial
substance for fertilizing the soil'
3 . As per https://www, merriam-webster.com. Manure is a 'material that
fertilizes land'
Thus from the above definitions we can say that, anything which increases the fertility
of soil is Fertilizer. Since Manure is also used to increase the fertility of soil, the same is
also a Fertilizer whether organic or chemical.
If the Applicant sells coir pith compost which is a fertilizer, in a sack of 30 kg and
above i.e., prepacked and labelled with unregistered brand name i.e., 'SURYA' then it is
exigible to GST at 5% as explained in para 12 supra.

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13. Now we proceed to answer third question. The applicant wants to know whether
GST is applicable if the coir-pith compost in 30 kg and above quantity bags are sold
without any label. In this regard we invite reference to rule 4 of The Legal Metrology
(Packaged Commodities) Rules, 2011, which stipulates that pre-packaged commodity
must bear thereon a label securely affixed thereto and the said rule is as under:
4. Regulation for pre-packing and sale etc. of commodities in packaged form. -
On and from the commencement of these rules, no person shall pre-pack or
cause or permit to be pre-packed any commodity for sale, distribution or
delivery unless the package in which the commodity is pre-packed bears
thereon or, a label is securely affixed thereto such declarations as are required
to be made under these rules. Explanation.- The existence of packages without
the declaration of retail sale price within the manufacturer's premises shall not
be construed as a violation of these rules and it shall be ensured that all
packages leaving the premises of manufacturer for their destination shall have
declaration of retail sale price on them as required in these rules.
Further we also invite reference to the explanation given to 'pre-packaged and labelled
in Notification No. 6/2022-Central Tax (Rate) : MANU/GSCT/0006/2022, dated
13.07.2022 which is reproduced in para 12 supra.
'Pre-packaged and labelled' means a 'pre-packaged commodity' (as defined in
clause (1) of section 2 of the Legal Metrology Act, 2009) where, the package in
which the commodity is pre-packed or a label securely affixed thereto is
required to bear the declarations under the provisions of the Legal Metrology
Act, 2009 and the rules made thereunder. Thus, if the Applicant sells coir-pith
compost pre-packed in 30kg and above quantity bags without label also it is
taxable (as explained in para 12 supra) since it is already prepacked and
bearing a label is mandatory.
14. Now we proceed to answer fourth question. The Applicant wants to know whether
GST is applicable if the registered person sells coir-pith compost in 25 kg and less
prepacked and labelled bags to nurseries who buys for consumption. We can see in
paragraph 12.1 supra about the Chapter -II of The Legal Metrology (Packaged
Commodities) Rules, 2011 which is about provisions applicable to packages intended
for retail sale. Rule 3(a) of the same says that these rules are not applicable to
packages of commodities containing quantity of more than 25 kg or 25 litre. Since the
applicant intends to sell coir-pith compost in bags of 25 kg and less i.e. pre-packed and
labeled the same is exigible to GST at 5% as per entry No. 215 of Notification No.
1/2017-Central Tax (Rate) : MANU/GSCT/0001/2017 dated: 28.06.2017 as amended
vide Notification No. 6/2022-Central Tax (Rate) : MANU/GSCT/0006/2022, dated
13.07.2022.
15. Now we proceed to answer fifth question. The Applicant wants to know whether the
nurseries, who are un-registered dealers, come under the definition of "Institutional
consumers". In this regard we invite reference to Legal Metrology (Packaged
Commodities) Rules, 2011 which was amended vide Legal Metrology (Packaged
Commodities) Amendment Rules, 2017 dated: 23.06.2017 which has amended the
definition of 'institutional consumer' as below:
(ii) for clause (be), the following clause shall be substituted, namely:-
'(be) "institutional consumer" means the institution which buys
packaged commodities bearing a declaration 'not for retail sale',

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 directly from the manufacturer or from an importer or from wholesale
dealer for use by that institution and not for commercial or trade
purposes;'
From the above definition it is clear that for any institution to be an 'institutional
consumer' they should satisfy these conditions:
1. the packaged commodity bought by them should bear a declaration 'not for
retail sale'
2. should buy directly from a manufacturer or an importer or a wholesale dealer
3 . packaged commodity bought, should be for their own use and not for
commercial or trade purposes.
A plant nursery is an establishment that raises, propagates, multiplies, and sells
seedings, saplings, and other planting materials for commercial purpose and thus it
does not qualify to be an institution. Further, nurseries buy coir pith compost to grow
the blanks and then sell the same i.e. nothing but for commercial purpose. Since the
nurseries use coir pith compost for commercial purposes, they are not covered under
the definition of 'institutional consumer'.
16. Now we proceed to answer sixth question. The Applicant wants to know whether
GST is payable if the registered person sells coir-pith compost of 30Kg and above
prepacked and labelled bags to nurseries who buys for consumption.
Since coir pith compost is a fertilizer as explained in para 12.2 supra, Chapter II of the
Legal Metrology (Packaged Commodities) Rules, 2011, that is provisions applicable to
packages intended for retail sale are applicable to fertilizer even though they are sold in
bags up to 50kg. As explained in para 15 supra, nurseries are not covered under
'institutional consumer'. Thus if the applicant supplies coir-pith compost of 30Kg and
above which is prepacked and labeled even to nurseries, then it is exigible to GST at
5% (CGST 2.5% and SGST 2.5%) as explained in para 12 supra.
17. Now we proceed to answer seventh question. The Applicant wants to know whether
coir pith compost sold in bag above 50kg is exempted from GST. Rule 3(b) of Legal
Metrology (Packaged commodities) Rules, 2011 says that these rules are not applicable
to packages of commodities containing quantity of more than 25 kg or 25 litre excluding
cement and fertilizer sold in bags up to 50 kg i.e. Chapter II of that Rules shall not
apply to fertilizers sold in above 50 kg bags and hence they are not exigible to GST if
sold in above 50 kg bags.
18. In view of the foregoing, we pass the following
RULING
i. Entry 132A of Notification No. 2/2017'-Central Tax (Rate) dated: 28.06.2017
as amended by Notification No. 7/2022-Central Tax (Rate) :
MANU/GSCT/0007/2022, dated 13-07-2022 applies to Coir-Pith Compost other
than prepackaged and labeled.
ii. If the registered person sells coir-pith compost in 30 kg and above quantity
bags with un-registered brand name "SURYA". Then the same is exigible to GST
at 5%(CGST @ 2.5% and SGST 2.5%) as per entry No. 215 of Notification No.
1/2017-Central Tax(Rate) : MANU/GSCT/0001/2017 dated: 28.06.2017 as

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amended further.
iii. Coir-pith compost can't be sold without any label in 30kg as label is
mandatory for the pre-packed commodities and thus above quantity bags are
also exigible to GST at 5%(CGST @ 2.5% and SGST 2.5%) as per entry No.
215 of Notification No. 1/2017-Central Tax(Rate) : MANU/GSCT/0001/2017
dated: 28.06.2017 as amended further.
iv. If the registered person sells coir-pith compost in 25 kg and less pre-packed
and labelled bags to nurseries who buys for consumption, then also the said
pre-packed and labelled bags are exigible to GST at 5% (CGST @ 2.5% and
SGST 2.5%) as per entry No. 215 of Notification No. 1/2017-Central Tax(Rate)
: MANU/GSCT/0001/2017 dated: 28.06.2017 amended further.
v. The nurseries, who are un-registered dealers, are not covered under the
definition of "Institutional consumers".
vi. If the registered persons sells coir-pith compost with 30Kg and above pre-
packed and labelled bags to nurseries who buys for consumption, in such cases
GST is payable at 5%(CGST @ 2.5% and SGST 2.5%) as per entry No. 215 of
Notification No. 1/2017-Central Tax(Rate) : MANU/GSCT/0001/2017 dated:
28.06.2017 amended further
vii. The coir-pith compost is exempted from GST when sold in above 50 kg
bags.
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