https://www.taxtmi.com/caselaws?id=439913 The AAR, West Bengal ruled on a composite supply case involving wheat crushing services for the State Government's Public Distribution System. The applicant mills wheat into fortified atta, receiving Rs. 179.48 per 100kg including fortification and packing charges, plus non-cash consideration of Rs. 124 from by-products and gunny bags. The AAR determined this constitutes a composite supply with milling as the principal service. Since the goods component (Rs. 60) represents only 23.03% of total supply value (Rs. 260.48), falling below the 25% threshold, and the supply relates to Panchayat functions under Article 243G, it qualifies for exemption under Notification No. 12/2017-Central Tax (Rate) entry 3A rather than 5% tax. en-us Tue, 30 May 2023 00:00:00 +0530 Fri, 18 Apr 2025 11:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=439913 The AAR, West Bengal ruled on a composite supply case involving wheat crushing services for the State Government's Public Distribution System. The applicant mills wheat into fortified atta, receiving Rs. 179.48 per 100kg including fortification and packing charges, plus non-cash consideration of Rs. 124 from by-products and gunny bags. The AAR determined this constitutes a composite supply with milling as the principal service. Since the goods component (Rs. 60) represents only 23.03% of total supply value (Rs. 260.48), falling below the 25% threshold, and the supply relates to Panchayat functions under Article 243G, it qualifies for exemption under Notification No. 12/2017-Central Tax (Rate) entry 3A rather than 5% tax. Case-Laws GST Tue, 30 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=439913