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2018 (11) TMI 661 - AAR - GSTLiability of GST - supply of goods as well as service - composite supply - business of job work activity of custom milling of paddy involving milling activity, transportation of rice and usage charges of gunny bags - Held that:- The transportation of paddy and rice are conditionally exempted under specific Notifications. All supplies would be treated as exempted supply only when the transportation works would be given full and unconditional exemption under corresponding Notification. On account of conditional exemption, the supplies involved in the instant case in hand would be exigible to tax. The part-exemption as sought by the applicant for the service supply of transportation of paddy and rice is not eligible to them, the same being under a false premise - The said supply involved here cannot be separated from the tax computation of composite supply - the custom milling of paddy being the principal supply (predominant supply) involved in the case in hand, the same would attract GST (2.5% CGST and 2.5% SGST). Ruling:- There being a single contract for all above supplies of goods & services and as the said contract comprises of two or more supplies (i.e. transportation, supply of packing material & incentives) and one of which is principal supply i.e. custom milling of paddy, it shall treated as composite supply. The tax liability on a composite supply shall be decided as a supply of such principal supply under N/N. 31/2017-CT(R) N/N. 11/2017-CT (Rate) dated 28-06-2017 serial No. 26. (c), vide state notification no. F-10-82/2017/CT/V(146) dated 13.10.2017 i.e. 5%.
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