The Government of Bihar on 15th July 2024 amended an older notification No.2/2017-State Tax (Rate), dated 29th June ,2017 that affects how agricultural produce is packaged and taxed under the Goods and Services Tax (GST).
Key Points of the Notification
- Authority and Purpose: This notification comes under the Bihar Goods and Services Tax Act, 2017. The Governor of Bihar, following recommendations from the GST Council, has introduced an amendment for the public interest.
- The new amendment specifically targets the packaging of agricultural produce. If agricultural produce is packaged in quantities greater than 25 kilograms or 25 litres , it will not be considered as PRE-PACKAGED and LABELLED under GST rules.
- This change is significant because it overrides certain provisions of the Legal Metrology Act, 2009, which usually governs how goods should be packaged and labelled.
- For Farmers and Suppliers: If you’re selling agricultural products in large packages (over 25 kg or 25 litres), you won’t need to follow the same labelling rules as smaller, pre-packaged goods. This could simplify the selling process and reduce costs associated with packaging and labelling.
- For Consumers: You might notice changes in how large quantities of agricultural products are packaged. These products won’t have the same labelling as smaller packages, but this doesn’t affect the quality or safety of the products.
Implementation Date
This change takes effect from the 15th of July, 2024. All relevant parties should ensure they comply with the new rules from this date onwards.
