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GST Registration for Rice Mill

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Emerson.C

Asst. Manager

151 Points Posted on 19 February 2021

My client is running rice mill and is receiving PADDY from customer and is processed to rice and gives it back to customers.

He gets commission for the process from customers. He also some time forward to other Modern rice mils for the same process in case if can not do from his rice mill.

In this case, is he mandatory to take GST registration as his counterpart rice mill ask for GST No.

Pls resolve this query. Thanks in advance

Replies (6)

Quick Summary

This discussion explores whether a rice mill processing paddy for customers on a commission basis needs GST registration. The core question is whether the service provided, essentially a job work, is taxable. While processing paddy into rice for farmers might be exempt, when done for other rice mills or on a commission basis, it appears to attract GST at 5% on the processing charges. The client is seeking clarification on issuing bills and the tax implications for their business.

Balaji.d

82 Points Posted on 19 February 2021

Further the paddy cannot directly satisfy the requirement of consumer so there is med of processing of paddy into rice by the cultivators. since every farmers having no facility or not owned machine for processing paddy into rice, so they carry out processing through rice Miller and the services provided by rice Miller should not he charged with gst as prescribed inthe gst law.

Emerson.C

Asst. Manager

151 Points Posted on 19 February 2021

Ok but The rice Miller as himself can register UNDER GST and file the returns as servicing to customers by making it to Rice.
whether he can issue bill to other rice Miller for exchange of paddy and rice. If eligible then how can we treat this ender GST.

Balaji.d

82 Points Posted on 19 February 2021

Alternatively can we said that when paddy processed into rice by cultivators by own machine then service are not liable to gst but when get it done through rice Miller is taxable marketing

Emerson.C

Asst. Manager

151 Points Posted on 19 February 2021

So, if the process is done through Miller then would attract 5% GST as job work done by Miller.
is it correct?

Balaji.d

82 Points Posted on 19 February 2021

Not on the entire. value of rice. there for milling of paddy into rice on job work basis is liable to gst @ 5 percentage on the processing charges basis