Case Law Details
In re Shiv Flour Mill (GST AAAR West Bengal)
Whether the supply of service provided by the applicant to Food & Supplies Department, Govt. of West Bengal by way of milling of food grains into flour for distribution of such flour under Public Distribution System is eligible for exemption under entry No. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and what shall be rate of GST on such milling, if it does not fall under entry No. 3A?
The WBAAR, in its advance ruling dated 31.12.2021, has observed that the instant supply is a composite supply. The WBAAR has also observed that the instant composite supply undisputedly fulfils criteria (i) and (ii) in Para 7 above. Now, it has been observed that the value of goods in the instant composite supply is lesser than 25% of the total supply value. So the instant composite supply fulfils all the three criteria for qualifying for exemption under entry no. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (corresponding State Notification No. 1136 FT dated 28.06.2017) as listed in para 7 above.
In view of above discussion, we rule that in the instant case the supply of fortified wholemeal flour to the Food & Supplies Department, Government of West Bengal will fall under entry no. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (corresponding State Notification No. 1136 FT dated 28.06.2017) and exempt from taxation.
FULL TEXT OF THE ORDER OF AUTHORITY FOR APPELLATE ADVANCE RULING,WEST BENGAL
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