GST Exemption for Rice Milling By-Products: Conversion Charges and Estimated Value Not Considered Taxable Consideration

HC ruled that GST cannot be levied on the value of by-products (broken rice, husk, and bran) generated during paddy milling for public distribution system (PDS). The court applied precedent from a prior case (Shiridi Sainath Industries) and determined that the conversion charges and estimated value of by-products do not constitute taxable consideration. The impugned assessment orders dated 25.10.2024 and 24.10.2024 were consequently set aside, effectively exempting the milling service provider from GST on retained by-products. .....

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