GST on milling services: exemption for composite supplies to State when goods value is limited; otherwise job work rate applies. Clarification: milling of wheat into flour or paddy into rice for State distribution under PDS qualifies as a composite supply; exemption under entry No. 3A applies when the value of goods in the composite supply does not exceed the specified threshold, a factual determination. If the goods component exceeds that threshold, the supply to a registered person is to be treated as job work and attracts the concessional job work rate; persons registered solely for tax deduction purposes qualify as registered persons for this treatment.
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 milling services: exemption for composite supplies to State when goods value is limited; otherwise job work rate applies.
Clarification: milling of wheat into flour or paddy into rice for State distribution under PDS qualifies as a composite supply; exemption under entry No. 3A applies when the value of goods in the composite supply does not exceed the specified threshold, a factual determination. If the goods component exceeds that threshold, the supply to a registered person is to be treated as job work and attracts the concessional job work rate; persons registered solely for tax deduction purposes qualify as registered persons for this treatment.
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