RATE OF GST ON PADDY HULLING CHARGES RECEIVED FROM GOVT AGENCIES BY RICE MIILLER.

Reply : Services by way of job work in relation to all food and food products falling under Chapters 1 to 22 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) are taxable @ 5% under S.No.26(i) of Noti. No.11/2017-CT (Rate) Dated: 28.06.2017 heading 9988. Rice is covered under chapter 10 with HSN code 1006. Hence, Rice hulling charges are taxable @5% under GST. In the case of Guru cold Storage Pvt. Ltd. , AAR, Gujrat  in its order dated 31.12.17 held that  ‘pulses (commonly known as ‘Dal’) are obtained after De-husking or splitting or both, which processes are usually not carried out by farmers or at farm level but are carried out by the pulse millers. Therefore, pulses (de-husked or split) are not agriculture produce. Similarly, de-husking/ Hulling of rice is also not a agriculture activity.