9911796707
TMI Blog2020 (2) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crushing. The processed food grain will be used for distribution through the Public Distribution System (hereinafter PDS). The Applicant seeks a ruling whether the above activity is exempt under 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), as amended (hereinafter collectively called the Exemption Notification). The question is admissible under section 97(2) (b) of the GST Act. 1.2 The Applicant is unregistered under the GST Act. Being unregistered, neither the Central nor the State tax administrations exercise ascertained administrative jurisdiction on the Applicant. Requirements under section 98(1) of the GST Act are, therefore, dispensed with. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority by way of water supply, public health, sanitation, conservancy, solid waste management or slum improvement and up-gradation. 3.2 The above Circular leaves no doubt that the phrase in relation to any function , as applied to Sl No. 3 or 3A above, makes no substantial difference between SI No. 25(a) of the ST Notification and SI No. 3 or 3A of the Exemption Notification. Under the previous Service Tax regime, the exemption was limited to certain functions specified in Sl No. 25(a) of the ST Notification, whereas, under the CST the ambit has been broadened to include any such functions that are performed by a Panchayat or a Municipality under specific provisions of the Constitution. These functions are in the nature of public welfa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. In the absence of any quantitative details the proportion of the packing materials in the bundle in value terms is unascertainable. 3.5 The Applicant intends to make the composite supply as above to the State Government. The recipient is, therefore, the State Government. 3.6 The Applicant intends to crush the food grains belonging to the recipient and deliver the crushed grains to the recipient after packing. If the terms of the agreement with the recipient is such that it binds both the supplier and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
