In re Taranjeet Singh Tuteja & Brothers (GST AAR Chhattisgarh)
Tax liability in the business of job work activity of custom milling of paddy involving milling activity, transportation of rice and usage charges of gunny bags.
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 Act 2017 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 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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