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of <h1>GST Exemption for Milling Wheat and Rice under PDS Clarified; Conditions Apply Based on Goods' Value Percentage.</h1> The circular addresses the applicability of GST on the milling of wheat into flour or paddy into rice for distribution by State Governments under the Public Distribution System (PDS). It clarifies that such milling services can be exempt from GST under entry No. 3A of Notification No. 12/2017 if the value of goods used does not exceed 25% of the composite supply's total value. If the goods' value exceeds 25%, a 5% GST rate applies if the supply is to a registered person as a job work service. The circular advises contacting the Board for any implementation difficulties.
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