Whether gst is payable on milk processing charges

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Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2017 A co-operative society has entered into a contract with a sub-contractor who processes milk for the society. Whether GST is applicable in the following cases:

1) Milk is only processed (Processing charges payable to the contractor @ 0.50 per litre)
2) Milk is processed and packed in pouches. (Processing charges payable @ 1.40 per litre)
Packing material is provided by the co-operative society.

Amit Goel

Amit Goel (Expert)

22 July 2017 No Refer the Following Exemption:

Carrying out an intermediate production process as job work in relation to cultivation of plants and
rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or
other similar products or agricultural produce.

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2017 Thanks. Please clarify how milk processing is covered in the above paragraph.

Amit Goel

Amit Goel (Expert)

22 July 2017 Milk processing is necessary to make it marketable for primary use.

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2017 Thank you so much.

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