No GST on Fortification and Packing of Whole Wheat Grains for Distribution Under Public Distribution System | AAR

  • News|Blog|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 13 September, 2023

Recent Posts

Blog, Company Law

What is Terminal Value in Valuation – Definition | Approaches | Importance

Blog, Advisory, Company Law

[Analysis] SEBI Proposes Enhancements to the SME IPO Framework | A Detailed Overview of the New Regulations and Their Impact

Latest from Taxmann

GST on Fortification and Packing

Case Details: Authority for Advance Rulings, West Bengal Aryan Flour Mills (P.) Ltd., In re - [2023] 154 taxmann.com 208 (AAR-WEST BENGAL)

Judiciary and Counsel Details

    • Tanisha Dutta & Joyjit Banik, Member
    • Manish Raj Dhandharia, FCA for the Applicant.

Facts of the Case

The applicant was engaged in providing services of crushing wheat provided by the State Government, into fortified atta which in turn would be supplied by the State Government through Public Distribution System. It filed an application for advance ruling to determine taxability of services provided to the State Government.

AAR Held

The Authority for Advance Ruling noted that composite supply of goods and services in which the value of supply of goods constitutes not more than 25% of the value of the said composite supply provided to the Central Government or State Government would be exempt from GST.

In the instant case, the nutrients added in the atta as fortification process cannot be considered as a separate/distinct supply of goods in addition to the service of milling of wheat into flour as it is an integral part of the process of such conversion and value of goods involved in such composite supply would not exceed 25 per cent of value of supply. Therefore, the composite supply of services to Food and Supplies Department of State Government by way of milling of whole wheat grains provided by State Government, its fortification and packing for distribution under Public Distribution System would be eligible for exemption.

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied