Applicability of GST on Ginning and Pressing Charges

[Krishna Murthy]

Whether Ginning and Pressing Charges attract GST. By Ginning it means Raw Cotton obtained as Agl produce is put to process to separate Cotton Seed and Cotton from Raw Cotton. For this process to be done is normally undertaken by factories doing exclusively this separation process by charging Job Work Charges. Later the ginned cotton being very bulky for transport is pressed into bales for easy transport and this process is known as Pressing and and this is also done by the said factory on job work basis. Here there would be involvement of some packing material. Does these two activities attract GST. Does those come under any of the exemption in the Notification No 12/2017 Central Tax Rate.

Likewise, charges are also collected for separating Rice from Paddy known as Hulling. Whether the hulling charges attract GST

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue. If not please inform.

[Krishna Murthy]

No Sir, not yet got clarified in this matter. Hope you would clarify me in respect of the above issues. Thank You.

AI Summary

GST applicability on ginning, pressing and hulling: whether job work charges for agricultural processing attract tax or exemption. Applicability of GST on job work charges for ginning and pressing of cotton, including incidental packing materials, and on hulling charges for separating rice from paddy, is queried with specific reference to possible coverage by exemptions in Notification No 12/2017 Central Tax Rate; the forum exchange records that clarification was not obtained and seeks authoritative guidance on whether these processing services attract GST.