GST Rate of 5 % is applicable onCustom Milling of Paddy : AAR

GST Rate of 5 % is applicable onCustom Milling of Paddy : AAR | GST Rate of 5 % is applicable onCustom Milling of Paddy for manufacturing of rice along with it's transportation and packing ingunny begs. This ruling was given by Authority of Advance Ruling Chhattisgarh in matter ofTaranjeet Singh Tuteja & Brothers.

GST Rate of 5 % is applicable onCustom Milling of Paddy : AAR

ORDER (Under section 98 of the Chhattisgarh Goods and Services Tax Act, 2017)

The ruling so sought by the Applicant is accordingly answered as under:- As per Agreement No: - AC112017410015 Dated 16.11.2017 with Chhattisgarh State Marketing Co-Operative Federation Limited, the applicant has been allotted the principal job work of Custom Milling of Paddy for manufacturing of rice, along with custom milling they will also get the payment towards the transportation of paddy & Rice, usage of gunny begs for packing of Rice and incentives as an additional charge for custom milling. There being a single contract for all above supplies of goods & services and as the said contract comprises of two or more supplies (i.e. transportation, supply of packing material & incentives) and one of which is principal supply i.e. custom milling of paddy, it shall treated as composite supply as per section 2(30) of Chhattisgarh GST Act2017 and as per the provision of section 8 (a) of Chhattisgarh GST Act 2017. Accordingly the tax liability on a composite supply shall be decided as a supply of such principal supply under Notification no. 31/2017-CT(R) notification no. 11/2017-CT (Rate) dated 28-06-2017 serial No. 26. (c), vide state notification no. F-10-82/2017 /CT/V(146) dated 13.10.2017 i.e. 5% (2.5% CGST & 2.5% SGST).

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