Case Law Details
In re Sri Durga Food Products Private Limited (GST AAR West Bengal)
The case in question pertains to Sri Durga Food Products Private Limited and the GST implications on their activity of converting wheat into atta or fortified atta. This wheat is supplied by the State Government for distribution via the Public Distribution System (PDS). The ruling investigates whether this process qualifies as an exempt supply or if it falls under a taxable category, shedding light on the complex nature of GST in such cases.
Analysis: The central focus of the case lies in determining the supply nature – whether it’s a composite supply of goods and services, whether it’s connected to functions entrusted to a Panchayat or Municipality under the Indian Constitution, and if the value of goods supplied is not more than 25% of the composite supply’s value.
Upon evaluating the provided documents and the applicant’s activities, the applicant appears to qualify under the definition of ‘composite supply’ in accordance with the GST Act. Their activity involves milling wheat into wheat flour, fortifying it with micronutrients, and packing for supply – a process that fits within the GST Act’s clause (30) section 2 definition.
Furthermore, it’s clear that the applicant’s composite supply aligns with functions entrusted to a Panchayat under Article 243G of the Indian Constitution. The agreement they’ve entered with the State Government for the supply of fortified atta falls within the Public Distribution System (PDS) framework.
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