Case Law Details
In re Vikash Agritech Food Private Limited (GST AAR West Bengal)
This article examines the case of Vikash Agritech Food 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 functions entrusted to a Panchayat, and the percentage of goods’ value in the total supply. Moreover, it considers the exemption criteria under GST laws.
Analysis: Vikash Agritech Food Private Limited has entered into an agreement with the District Controller of Food and Supplies, Government of West Bengal, for the supply of fortified atta. The main issue at hand is whether this supply falls under entry serial no. 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. To determine this, several aspects must be analyzed.
Firstly, it is essential to establish if the supply made by the applicant qualifies as a composite supply of goods and services. As per the definition in clause (30) of section 2 of the GST Act, a composite supply involves two or more taxable supplies of goods or services, bundled and supplied together, with one being the principal supply. In this case, the milling services provided by Vikash Agritech Food Pvt Ltd constitute the principal supply, as they are integral to the conversion process.
Next, it needs to be determined if this composite supply is related to any function entrusted to a Panchayat under article 243G of the Constitution. The agreement between the applicant and the State Government is executed in accordance with relevant guidelines for the empanelment of flour mills. These guidelines specifically mention functions entrusted to a Panchayat under the Constitution, indicating that the composite supply is indeed related to such functions.
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