GST on Fair Trade Premium collected by association of farmers

In re Fair Trade Alliance Kerala (FTAK) (GST AAR Kerala)

1. Whether the applicant an association of farmers, engaged in supply of agricultural produce through concept of fair trade, is liable to pay GST on component of “Fair Trade Premium?

Ruling: Yes, The Fair Trade Premium forms part of the consideration and value of taxable supply of the goods supplied and the applicant is liable to pay GST on the same rate as the rate applicable to the respective goods supplied.

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