The milling of Red gram fall under the Serial No.26 Heading 9988 (i) (f) of the Notification no.11/2017 Central Tax Rate dated 28.06.2017 and as amended from time to time and liable to tax @ 5%.
Rate of tax (service)— In the instant case, applicant is engaged in the business of pulses and dalls with a facility in its mill to convert pulses into dalls. following question has been raised before authority—
1. Whether the supply of red gram dall 2600 MTs by receiving 3823.529 MTs of indigenous red gram under barter system attracts any tax under GST?
2. Whether the packing charges of Rs. 4.50 received by the applicant for packing 1 Kg. of red gram dall supplied to the said Corporation are taxable?
it is clear that the applicant is appointed as "miller cum transporter", for the purpose of conversion of red gram whole to red gram dall @68% of outturn ratio. Hence, the argument of the applicant treating the activity under taken in the instant case, as 'barter system' is misconstrued. It is nothing but 'job work' carried out on the whole red gram supplied to the applicant.
In the instant case, the custom milling is the principal supply, while the packing charges of Rs. 4.50 received by the applicant for packing of I Kg. of red gram dall supplied to the said Corporation constitutes ancillary supply. As seen from the agreement, it is a single contract of composite supply comprising of two or more taxable supplies like milling, transportation and packaging services. Out of which, milling is the principal supply and the rest of the supplies are liable to be taxed at the same rate of principal supply.
Held that— The transaction cannot be considered as 'barter', but a 'job work' and attracts the tax rate of 5% under Serial No.26 Heading 9988 (i) (f) of the Notification No.11/2017 Central Tax Rate dated 28.06.2017 as amended from time to time.
The milling of Red gram fall under the Serial No.26 Heading 9988 (i) (f) of the Notification no.11/2017 Central Tax Rate dated 28.06.2017 and as amended from time to time and liable to tax @ 5%.
Rate of tax (service)— In the instant case, applicant is engaged in the business of pulses and dalls with a facility in its mill to convert pulses into dalls. following question has been raised before authority—
1. Whether the supply of red gram dall 2600 MTs by receiving 3823.529 MTs of indigenous red gram under barter system attracts any tax under GST?
2. Whether the packing charges of Rs. 4.50 received by the applicant for packing 1 Kg. of red gram dall supplied to the said Corporation are taxable?
it is clear that the applicant is appointed as "miller cum transporter", for the purpose of conversion of red gram whole to red gram dall @68% of outturn ratio. Hence, the argument of the applicant treating the activity under taken in the instant case, as 'barter system' is misconstrued. It is nothing but 'job work' carried out on the whole red gram supplied to the applicant.
In the instant case, the custom milling is the principal supply, while the packing charges of Rs. 4.50 received by the applicant for packing of I Kg. of red gram dall supplied to the said Corporation constitutes ancillary supply. As seen from the agreement, it is a single contract of composite supply comprising of two or more taxable supplies like milling, transportation and packaging services. Out of which, milling is the principal supply and the rest of the supplies are liable to be taxed at the same rate of principal supply.
Held that— The transaction cannot be considered as 'barter', but a 'job work' and attracts the tax rate of 5% under Serial No.26 Heading 9988 (i) (f) of the Notification No.11/2017 Central Tax Rate dated 28.06.2017 as amended from time to time.