https://www.taxtmi.com/caselaws?id=432208 Custom milling of paddy into rice was treated as taxable job work rather than an exempt Panchayat function. The AAR held that exemption under Article 243C and the circular on activities in relation to Panchayat functions did not apply because the milling was carried out for consideration in a commercial arrangement and was not shown to form part of a Panchayat function or the public distribution system. It further held that milling is not an intermediate production process in relation to cultivation, as it occurs after harvesting, is performed by rice millers rather than cultivators, and changes the essential character of paddy. The activity was therefore held liable to GST at 5% on the processing charges. en-us Wed, 25 Nov 2020 00:00:00 +0530 Fri, 11 Apr 2025 18:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=432208 Custom milling of paddy into rice was treated as taxable job work rather than an exempt Panchayat function. The AAR held that exemption under Article 243C and the circular on activities in relation to Panchayat functions did not apply because the milling was carried out for consideration in a commercial arrangement and was not shown to form part of a Panchayat function or the public distribution system. It further held that milling is not an intermediate production process in relation to cultivation, as it occurs after harvesting, is performed by rice millers rather than cultivators, and changes the essential character of paddy. The activity was therefore held liable to GST at 5% on the processing charges. Case-Laws GST Wed, 25 Nov 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=432208