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of <h1>Clarification on GST for Milling Wheat and Paddy Under PDS: Exemption and 5% Rate Explained (Notification 12/2017.</h1> The circular clarifies the Goods and Services Tax (GST) implications on the milling of wheat into flour and paddy into rice for distribution by State Governments under the Public Distribution System (PDS). It states that if the value of goods in the composite supply does not exceed 25% of the total value, it is exempt under entry No. 3A of Notification No. 12/2017-Central Tax. If the value exceeds 25%, a 5% GST rate applies if provided to a registered person. The circular aims to ensure uniformity in the implementation of these provisions across different jurisdictions.
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