Taxability of custom milling: milling of paddy treated as taxable job work with reduced GST on processing charges. Milling of harvested paddy into rice is not an intermediate production process linked to cultivation and thus does not qualify for the agricultural-produce job-work exemption; milling performed as job work is a taxable service and the applicable reduced GST rate applies to the processing charges only, not to the entire value of the rice.
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Taxability of custom milling: milling of paddy treated as taxable job work with reduced GST on processing charges.
Milling of harvested paddy into rice is not an intermediate production process linked to cultivation and thus does not qualify for the agricultural-produce job-work exemption; milling performed as job work is a taxable service and the applicable reduced GST rate applies to the processing charges only, not to the entire value of the rice.
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