TMI BlogClarification on taxability of custom milling of paddyX X X X Extracts X X X X X X X X Extracts X X X X ..... ntations have been received seeking clarification on whether custom milling of paddy by Rice millers for Civil Supplies Corporation is liable to GST or is exempted under S. No 55 of Notification 1136-F.T. [12/2017-StateTax (Rate)] dated 28th June 2017. 2. The matter has been examined. Sl. No 55 of Notification No.1136-F.T.[12/2017-StateTax (Rate)] exempts carrying out an intermediate production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods belonging to another registered person. Further, under Schedule II (para 3) of the WBGST Act, any treatment or process which is applied to another person s goods is a supply of service. 3. Milling of paddy is not an intermediate production process in relation to cultivation of plants. It is a process carried out after the process of cultivation is over and paddy has been harvested. Further, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2017-StateTax (Rate)] dated 28.06.17, 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). 6. Difficulty if any, in the implementation of the circular should be brought to the notice of the Commissioner. 7. This Circular shall be deemed to h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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