GST on milling of wheat into flour or paddy into rice for distribution by State Governments under PDS

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..... CULAR No. 09/2021-GST (Ref. Circular No. 153/09/2021-GST of Central Tax) Sub: GST on milling of wheat into flour or paddy into rice for distribution by State Governments under PDS -reg. Certain representations have been received seeking clarification whether composite supply of service by way of milling of wheat into wheat flour, along with fortification, by any person to a State Gover .....

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..... any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution . 3. As per the recommendation of the GST Council the issue is clarified as below. 3.1 Public Distribution specifically figures at entry 28 of the 11th Schedule to the constitution, which lists the activities that may .....

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..... ceeds 25%, then the applicable GST rate would be 5% if such composite supply is provided to a registered person, being a job work service (entry No. 26 of notification No. 11/2017- State Tax (Rate) dated 30.06.2017). Combined reading of the definition of job-work [section 2(68), 2(94), 22, 24, 25 and section 51] makes it clear that a person registered only for the purpose of deduction of tax under .....

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