Sir, I have sold paddy and husk straw to customer for usage in boiler. There is no GST applicable on sale of paddy/husk straw but now I am providing service of cutting of paddy/husk straw along with sale of straw.
My question is whether GST applicable on cutting charges received from customer.
Or it will be exempt under composite supply.
Clarification Confirms Cutting Charges for Paddy and Husk Straw Exempt from GST Under Notification No. 12/2017-CTR A query was raised regarding the applicability of GST on cutting charges for paddy and husk straw sold for boiler usage. While the sale of paddy and husk straw attracts no GST, the question was whether the cutting service incurs GST. One response clarified that cereal straw and husks fall under HS Code 1213, attracting nil GST, and rice bran under HS Code 2302, attracting nil GST if supplied as cattle feed. Another response cited Notification No. 12/2017-CTR, which exempts cutting services related to agricultural produce from GST, confirming that cutting charges are exempt. The final reply endorsed this exemption view. (AI Summary)
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