9911796707
TMI Blog2021 (8) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... instant case since the questions raised in the instant application is a subject matter which is found to be pending in case of the applicant under the provisions of the GST Act. - Case Number 05 of 2021 Order Number 04/WBAAR/2021-22 - - - Dated:- 30-7-2021 - MS. SUSMITA BHATTACHARYA, AND MR. JOYJIT BANIK, MEMBER Applicant s representative heard : Mr. Ardhendu Hati, Authorised Representative Preamble A person within the ambit of Section 100 (1) of the Central Goods and Services Tax Act, 2017 or West Bengal Goods and Services Tax Act, 2017 (hereinafter collectively called the GST Act ), if aggrieved by this Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Tax Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed thereunder, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e advance ruling is sought for is found to be covered under clause (e) of sub-section (2) of section 97 of the GST Act. 1.6 The applicant states that the question raised in the Application has neither been decided by nor is pending before any authority under any provision of the GST Act. 1.7 The officer concerned from the Revenue has raised no objection to the admission of the Application. 1.8 The Application is, therefore, admitted. 2. Submission of the applicant 2.1 The applicant submits that he has entered into agreements for custom milling of paddy with the State Government agencies where the applicant provides following supply on behalf of the government agencies: (a) Labour services for procurement of paddy at Government Mandi. (b) Transportation services for bringing paddy from Mandi to Rice Mill. (c) Services towards milling of paddy. (d) Usage charges of gunny bags for paddy. (e) Cost of gunny bag (new), if required. (f) Transportation services for delivery of rice from Rice Mill to the godown designated by the Government. 2.2 The applicant further submits that the aforesaid supplies can easily be separated and rates for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue, Government of India [Corresponding Trade Circular No. 13/2021 dated 30.06.2021 issued by the Commissioner, state Tax, West Bengal] wherein GST on milling of wheat into flour or paddy into rice for distribution by State Governments under PDS has been clarified as under: 3.1 Public Distribution specifically figures at entry 28 of the 11th Schedule to the constitution, which lists the activities that may be entrusted to a Panchayat under Article 243G of the Constitution. Hence, said entry No. 3A would apply to composite supply of milling of wheat and fortification thereof by miller, or of paddy into rice, provided that value of goods supplied in such composite supply (goods used for fortification, packing material etc) does not exceed 25% of the value of composite supply. It is a matter of fact as to whether the value of goods in such composite supply is up to 25% and requires ascertainment on case-to-case basis. 3.2 In case the supply of service by way of milling of wheat into flour or of paddy into rice, is not eligible for exemption under Sl. No. 3 A of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 for the reason that value of goods supply in such a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of tax. Thus the provision of composite supply under section 8(a) of GST Act would be applicable and the custom milling of paddy being the principal supply (predominant supply), the same would attract GST @5% (2.5% CGST and 2.5% SGST). 4. Observations Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorised representatives of the applicant during the course of personal hearing. We have also considered the submission made by the officer concerned from the Revenue. 4.2 Before we discuss on the questions raised by the applicant vide the instant application, we may have a look at the modus-operandi of the business activities carried out by the applicant in respect of custom milling of rice as it appears from the copy of the agreements submitted at the stage of personal hearing. 4.3 A Tri- Partite agreement has been executed between (i) the applicant, (ii) a CMR Agency selected by the Government of West Bengal for procurement of paddy and (iii) Co-operative Society/ Self Help Group Sangha or Mahasangha/ Farmer Producers Organisations/ Farmer Producers Company. According to the said agreement: (a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f accounts of CMR produced and delivered to State/FCI godowns. (k) The stock register, inventory details and books of accounts as also the physical stock of paddy and CMR shall remain open for inspection at all times by any official of the CMR Agency or that of GOI/Government of West Bengal for that matter (l) The Rice Mill shall maintain proper books of accounts of Gunny Bags e.g., receive from F S Department, utilisation, balance stocks etc. and shall keep open for inspection at all times by any official of the CMR Agency or that of GOI/Government of West Bengal for that matter. (m) It appears from the agreement that submission of bill by the applicant requires a number of documents which, inter alia, contains original paddy transportation challan, original of receipt of Mandi Labour Charges paid (Showing break-up of activity-wise details), copy of receipt of Milling Charges paid duly countersigned by Paddy Procuring Society etc. 4.4 We now come to the questions on which the instant advance ruling has been sought for. The applicant seeks to know in respect of taxability on transportation charges of raw paddy from the point of purchase to the rice mill and also ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
