Applicability of GST on cutting charges of paddy straw and Husk straw

[KARAN VERMA]

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.

AI Summary

GST exemption on agricultural processing: cutting charges for paddy and husk straw are covered as exempt services.
Charges for cutting paddy and husk straw supplied as goods fall within two operative treatments: the goods themselves are nil-rated agricultural products, and the cutting and similar on-farm processes are exempt as services relating to cultivation and farm processes that do not alter the essential characteristics of the produce, covering operations like cutting, drying, cleaning and trimming to make produce marketable.