The GST rate applicable to paddy milling work is 5%. This rate also extends to transportation charges if the rice mill owner handles the collection of paddy and delivery of rice and by-products under a single custom milling agreement.
23 November 2021
If the rice mill owner lifts Paddy from the premises of the owner and delivers Rice and bye- products to the owner at his location or location suggested by the owner, in a single composite agreement / contract for custom milling, then transportation charges received for such transportation shall also be liable to GST @5%.