Milling of Red gram liable to GST @ 5%

In re Seetharamanjaneya Dal And Fried Gram Mill (GST AAR Andhra Pradesh)

Question: Whether the supply of red gram dall 2600 MTs by receiving 3823.529 MTs of red gram under barter system attracts any tax under GST?

Answer: Applicant is appointed as “miller cum transporter”, for the purpose of conversion of red gram whole to red gram dall @68% of outturn ratio. Hence, the argument of the applicant treating the activity under taken in the instant case, as ‘barter system’ is misconstrued. It is nothing but ‘job work’ carried out on the whole red gram supplied to the applicant.

Now, we examine whether the activity of milling of whole red gram to red gram dall by the millers is liable to GST or not. The clarification issued in this regard on the custom milling of paddy is applicable as well in the instant case.

Milling of Red gram fall under the Serial No.26 Heading 9988 (i) (f) of the Notification no.11/2017 Central Tax Rate dated 28.06.2017 and as amended from time to time and liable to tax @ 5%.

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