Case Law Details
In re Taranjeet Singh Tuteja & Brothers (GST AAR Chhattisgarh)
Tax liability in the business of job work activity of custom milling of paddy involving milling activity, transportation of rice and usage charges of gunny bags.
Applicant has been allotted the principal job work of Custom Milling of Paddy for manufacturing of rice, along with custom milling they will also get the payment towards the transportation of paddy & Rice, usage of gunny begs for packing of Rice and incentives as an additional charge for custom milling. there being a single contract for all above supplies of goods & services and as the said contract comprises of two or more supplies (i.e. transportation, supply of packing material & incentives) and one of which is principal supply i.e. custom milling of paddy, it shall treated as composite supply as per section 2(30) of Chhattisgarh GST Act 2017 and as per the provision of section 8 (a) of Chhattisgarh GST Act 2017. Accordingly the tax liability on a composite supply shall be decided as supply of such principal supply under Notification no. 31/2017-CT(R) Notification no. 11/2017-CT (Rate)dated 28-06-2017 serial no. 26(c), vide state notification no. F-10-82/2017/CT/V(146) dated 13.10.2017 i.e. 5%(2.5% CGST & 2.5% SGST).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, CHHATTISGARH
The applicant M/s. Taranjeet Singh Tuteja & Brothers, Opp. Savitri Rice Mill, Sahdeopali, Tehsil-Pussore, Dist – Raigarh (C.G.) 496001 (GSTIN- 22AABFT3379G1ZA) has filed the application U/s 97 of the Chhattisgarh Goods & Services Tax Act, 2017 requesting advance ruling regarding tax liability in the business of job work activity of custom milling of paddy involving milling activity, transportation of rice and usage charges of gunny bags.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Certain states dont treat as composite supply.
Hulling charges are brought to tax.
Transport charges are treated exempted.
What is the Tax status for Hulling charges for FCI, State Civil Supplies Corporation for supply to Public Distribution System -PDS
This case must be referred to appellate authority as definition of Composite supply under section 2(30) is wrongly interpreted. Which says two or more taxable supplies shall form a composite supply, supply of rice and paddy are exempted supplies and not taxable supplies .
is this rulling is in appellate stage , if yes what is the position till date ……………………………….