TaxTMI 
TaxTMI 
TaxTMI 
2021 (8) TMI 144
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....ng Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 Sree Krishna Rice Mill (hereinafter referred to as, the applicant) is stated to be entered into agreements with State Government agencies for custom milling of paddy i.e., production of rice on job work. In the execution of custom milling, the applicant has to collect/procure paddy from paddy storage centers (commonly known as, Mandi) and thereafter transport it to the applicant's milling site. After milling of rice from the said procured paddy, the applicant delivers such milled rice from their milling site to the various delivery ....
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....y spelt out. The supplies, therefore, could have been arranged through different parties as well since the said supplies are not interconnected at all. 2.3 The applicant has referred the clarification given in para 5 of the Trade Circular No. 20/2018 dated 17.09.2018 issued by the Commissioner, State Tax, West Bengal [Corresponding Central Circular No. 19/19/2017-GST dated 20.11.2017] in respect of taxability of custom milling of paddy which, for the sake of conveniences, is reproduced below: "GST rate on services by way of job work in relation to all food and food products falling under Chapters 1 to 22 has been reduced from 18% to 5% vide notification No.1795-F.T.[31/2017-State Tax (Rate)] [notification No. 1135-F.T.[11/2017-State Tax (Rate)] dated 28.06.2017, Sl.No. 26 refers]. Therefore, it is hereby clarified that milling of paddy into rice on job work basis, is liable to GST at the rate of 5%, on the processing charges (and not on the entire value of rice)." 2.4 The applicant, as has already been stated, is of the opinion that different types of supplies as undertaken by him and referred to in para 2.1 cannot be termed either as 'composite supply' or 'mixed supply' as def....
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....licable GST rate would be 5% if such composite supply is provided to a registered person, being a job work service (entry No. 26 of notification No. 11/2017- Central Tax (Rate) dated 28.06.2017). Combined reading of the definition of job-work [section 2(68), 2(94), 22, 24, 25 and section 51] makes it clear that a person registered only for the purpose of deduction of tax under section 51 of the CGST Act is also a registered person for the purposes of the said entry No. 26, and thus said supply to such person is also entitled for 5% rate. 2.6 The authorised representative of the applicant submits that that the applicant enters into a Tri-Partite Agreement with the Agency selected by the Government of West Bengal for procurement of paddy and Co-operative Society/ Self Help Group Sangha or Mahasangha/ Farmer Producers Organisations/ Farmer Producers Company for the purpose of procurement of paddy, custom milling thereof and subsequent delivery of rice to the godown designated by the Government. Photocopies of some agreements are furnished in support the submission. 2.7 However, the authorised representative of the applicant, on being asked in course of personal hearing, has submitte....
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.... Agency as State Agent for procurement of paddy of Fair Average Quality (FAQ) at Minimum Support Price (MSP) and Custom Milling of rice thereof. (b) The CMR Agency has been awarded with the right to procure paddy from the farmers at MSP either by itself or through Paddy Procuring Society. (c) Further, the CMR Agency engages the Rice Mill (the applicant for the instant case) on terms and conditions read with the provisions of the West Bengal Custom Milled Rice (Obligation & control) Order,2015) to carry into effect the work for conversion of paddy into CMR (parboiled/raw rice) in accordance with the specification of Government of India. (d) The Paddy Procuring Society will procure FAQ paddy as per specifications contained in the West Bengal Custom Milled Rice (Obligation & control) Order, 2015) at MSP for common paddy directly from the farmers by opening Purchase Centres on behalf of the Agency. (e) The Rice Mill will purchase once used gunny bags for packing of paddy at each procuring centre. (f) The Rice Mill, after procurement of the paddy, shall be responsible to make all arrangements to receive, store it safely, temporarily and transport the paddy physically under its....