There's a debate surrounding the Goods and Services Tax (GST) applicable to flour mill businesses. While some rulings suggest a 5% GST if the activity is classified as 'job work', others point to an 18% GST if it's not. The classification can depend on specific interpretations and rulings, potentially falling under the GST Council's purview rather than solely AAR.
As per the AAR ruling the tax department has to determine whether the work done by the flour mill is “job work.” If it is job work then 5% GST has to be levied if not then 18% GST is applicable
It does not fall within the purview of AAR BUT within the purview of gst council. Now let us come to the point. 1. gst on flour mill there is a controversy.