GST exemption for composite supply to state governments clarified; milling for PDS exempt if goods value is a minor component. The circular clarifies that milling of wheat into flour with fortification, or paddy into rice, supplied to a government for distribution under the Public Distribution System qualifies as a composite supply and is exempt under entry No. 3A if the value of goods in the composite supply does not exceed the prescribed threshold; otherwise, where the goods component exceeds that threshold the supply, when rendered as job work to a registered person, attracts the concessional job-work GST rate and persons registered only for tax deduction at source are treated as registered persons for this purpose.
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 exemption for composite supply to state governments clarified; milling for PDS exempt if goods value is a minor component.
The circular clarifies that milling of wheat into flour with fortification, or paddy into rice, supplied to a government for distribution under the Public Distribution System qualifies as a composite supply and is exempt under entry No. 3A if the value of goods in the composite supply does not exceed the prescribed threshold; otherwise, where the goods component exceeds that threshold the supply, when rendered as job work to a registered person, attracts the concessional job-work GST rate and persons registered only for tax deduction at source are treated as registered persons for this purpose.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
