Home Case Index All Cases GST GST + AAR GST - 2020 (2) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 593 - AAR - GSTExemption from GST - Composite Supply or not - service of crushing food grains - The Government will send to the Applicant the whole, unpolished food grain for processing. The Applicant will return the grain after crushing. - SI No. 3 or 3A of Notification No 12/2017 CT (Rate) dated 28/06/2017 (corresponding State Notification No. 1136 - FT dated 28/06/2017) - Circular No. 51/25/2018-GST dated 31/07/2018 - HELD THAT:- The Applicant intends to deliver the crushed food grains packed in the manner the recipient requires. The packing material is supplied by the Applicant. The Applicant is, therefore, making supply of a bundle consisting of the service of crushing the grains and supply of materials required to pack the crushed grains, where the former is the predominant supply. They are supplied in conjunction with each other in the ordinary course of business as food grain cannot be transported without proper packing. It is, therefore, a composite supply of goods and services where service of crushing food grains is the principal supply and providing packing materials is ancillary to it - The Applicant intends to make the composite supply to the State Government. The recipient is, therefore, the State Government. It will be an activity in relation to a function entrusted to a Panchayat under article 243G of the Constitution, and its supply to the State Government should be exempt under Sl No. 3A of the Exemption Notification, provided the proportion of the packing materials in the composite supply in value terms does not exceed 25%.
|