https://www.taxtmi.com/caselaws?id=421148 AAR Kerala ruled that Fair Trade Premium received by farmers' association constitutes additional consideration for supply of agricultural goods and is liable to GST. The Premium, calculated as percentage of produce volume sold and collected from ultimate consumers as part of product price, has clear nexus with goods supply. Since payment is made in response to supply and forms part of transaction value under Section 15(1) CGST Act, it cannot be treated as ex gratia payment exempt from GST. Premium must be added to taxable value and taxed at same rate applicable to respective goods supplied. en-us Fri, 18 Feb 2022 00:00:00 +0530 Wed, 02 Apr 2025 18:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=421148 AAR Kerala ruled that Fair Trade Premium received by farmers' association constitutes additional consideration for supply of agricultural goods and is liable to GST. The Premium, calculated as percentage of produce volume sold and collected from ultimate consumers as part of product price, has clear nexus with goods supply. Since payment is made in response to supply and forms part of transaction value under Section 15(1) CGST Act, it cannot be treated as ex gratia payment exempt from GST. Premium must be added to taxable value and taxed at same rate applicable to respective goods supplied. Case-Laws GST Fri, 18 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=421148