Case of Fairmacs Shipstores Private Limited, AAR Tamil Nadu Ruling Dated 7th May 2025. AAR ruled that Hotels qualify as an industrial consumer’ as per Rule 2(bb) of the Legal Metrology (Packaged Commodities) Rules, 2011. The declaration ‘Not for Retail Sale’ is reportedly not affixed/printed in the packages, and therefore, such supplies are not exempted from payment of GST. However, on fulfilment of the requisite conditions, if such outward supplies are treated as ‘Nil’ rated, ITC on the inward supply involved in such cases cannot be availed.
— Since the mandatory requirement of declaration ‘Not for Retail Sale’ is not available in the packages instant case, and since the status of the distributor as a wholesale dealer is not clear/confirmed, the applicant should charge GST on such supplies to distributors.