Case Law Details
In re Aakash Food Products Private Limited (GST AAR West Bengal)
This article examines the case of Aakash Food Products Private Limited in West Bengal, focusing on the value of supply of services for converting wheat into atta/fortified atta. Additionally, it explores the applicable tax rate for this supply. The analysis investigates whether the supply qualifies as a composite supply, its relation to Panchayat functions, and the percentage of goods’ value in the total supply.
Analysis: The issue at hand is whether the supply provided by Aakash Food Products Pvt Ltd qualifies as an exempt supply or is taxable at a 5% tax rate. To determine this, several aspects must be analyzed.
Firstly, it needs to be established if the supply can be regarded as a composite supply of goods and services. Aakash Food Products Pvt Ltd undertakes activities such as milling, fortification, and packaging of wheat, which align with the definition of a composite supply under the GST Act.
Next, it is important to determine if this composite supply is related to functions entrusted to a Panchayat under the Constitution. The agreement between Aakash Food Products Pvt Ltd and the State Government is executed in line with relevant guidelines for the conversion of wheat into atta/fortified atta, which indicates a connection to Panchayat functions.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
