TaxTMI 
TaxTMI 
West Bengal govt is giving wheat to Flour Mills for milling/crushing and the resultant fortified Atta is supplied under Public Distribution Scheme. No GST is charged by the Millers since inception. Now the GST officer has issued summons u/s 70 of the CGST Act, 2017 to furnish all records and appear for hearing. There are about 100 millers, none of them has realised GST. Seek expert opinion on applicability of GST, if yes, the rate and whether the previous GST can be realised from the Govt of West Bengal.
Applicability of GST
11 Dec 2020 
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GST applicability on milling services: treatment and rates depend on whether flour is loose or packaged, with conditional exemptions.
Milling of wheat is treated as a manufacturing/service activity producing flour; loose/unpackaged flour attracts nil GST while packaged branded flour attracts a concessional positive rate. Applicable notifications set out these rates and conditional exemptions; some exemptions are conditional. The issue also raises whether historical non-levy by millers can be recovered from the State, with constitutional taxation provisions noted as relevant. (AI Summary)
Milling of wheat is treated as a manufacturing/service activity producing flour; loose/unpackaged flour attracts nil GST while packaged branded flour attracts a concessional positive rate. Applicable notifications set out these rates and conditional exemptions; some exemptions are conditional. The issue also raises whether historical non-levy by millers can be recovered from the State, with constitutional taxation provisions noted as relevant. (AI Summary)