GST on job work: milling of paddy into rice taxable, applied to processing charges at reduced rate, not whole value. Milling of paddy into rice is not an intermediate production process related to cultivation, does not qualify as exempt agricultural produce job work under S. No 55 of Notification 12/2017, and thus constitutes a taxable supply of service. When performed as job work, milling is taxable under the reduced GST rate applicable to job work on food products, with tax leviable on the processing charges only and not on the entire value of the rice.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
GST on job work: milling of paddy into rice taxable, applied to processing charges at reduced rate, not whole value.
Milling of paddy into rice is not an intermediate production process related to cultivation, does not qualify as exempt agricultural produce job work under S. No 55 of Notification 12/2017, and thus constitutes a taxable supply of service. When performed as job work, milling is taxable under the reduced GST rate applicable to job work on food products, with tax leviable on the processing charges only and not on the entire value of the rice.
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