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AAR determined that milling services provided to State Government qualify as composite supply with milling as principal supply. The services involve crushing wheat into fortified wholemeal atta and packaging. The supply relates to Public Distribution System, a function entrusted to Panchayat under Article 243G. Total supply value was Rs. 260.48, with goods component (fortification and packing) at Rs. 60.00, constituting 23.03% of total value. Since goods value is below 25% threshold and service relates to Panchayat^OC"Os constitutional function, the composite supply qualifies for exemption under Sl. No. 3A of Notification 12/2017-Central Tax (Rate), as amended.
AAR determined that milling services provided to State Government qualify as composite supply with milling as principal supply. The services involve crushing wheat into fortified wholemeal atta and packaging. The supply relates to Public Distribution System, a function entrusted to Panchayat under Article 243G. Total supply value was Rs. 260.48, with goods component (fortification and packing) at Rs. 60.00, constituting 23.03% of total value. Since goods value is below 25% threshold and service relates to Panchayat^OC"Os constitutional function, the composite supply qualifies for exemption under Sl. No. 3A of Notification 12/2017-Central Tax (Rate), as amended.
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