Authority for Advance Ruling — GST on supply of service by way of milling of food grains into flour to Food & Supplies Department, under Public Distribution System– The applicant is engaged in the business of selling flour (atta) and providing service of job work in the nature of crushing food grains supplied and owned by Food & Supplies Department, Government of West Bengal. The applicant sought an advance ruling as to whether the instant composite supply of service by way of milling of food grains into flour to Food & Supplies Department, for distribution of such flour under Public Distribution System is eligible for exemption under entry No. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. What shall be rate of GST on such milling, if it does not fall under entry No. 3A.

Held that:- The Hon’ble Authority for Advance Ruling held that value of supply shall be the consideration in money and shall also include all the components towards non-cash consideration. This composite supply of services is eligible for exemption under entry serial no. 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 only when the value of goods involved in such composite supply does not exceed 25% of the value of supply. If the value of goods involved in such composite supply exceeds 25% of the value of supply, the supply shall attract tax @ 5% GST vide entry serial No. 26 of the Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017.