MILK CHILLING UNIT

" Whether this activity of CHILLING OF MILK is liable for GST?"

Yes at 18%...... (but on additional cost)

Thanks for your reply sir!!

But pls can you clarify on this:

As per *Sec 66D of Finance Act,1994* “agricultural produce” means any produce of agriculture on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market;  

In service Tax regime Loading, Unloading, Packing, *Storage* or warehousing of Agriculture Produce is *Exempt* under service tax by way of *Sec 66D of Finance Act,1994*

The same exemption was carried forward to GST regime under *Annexure II* of Chapter III and treated as *Exempted Service*

You may refer below provisions under GST

As per Sl. No. 25 of Notification No. 2/2017-Central Tax (Rate) dated 28.6.2017 as amended " Fresh milk and pasteurised milk, including separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, excluding Ultra High Temperature (UHT) milk is exempted from gst..

As per Sl. No. 7 of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 as amended Ultra High Temperature (UHT) milk falling under Tariff item 0401 will attract gst @ 5%.

Under service tax regime, chilling of milk was catagorized as job work as 'manufacure & procesing of milk'.......... and was specifically exempted by way of notification.

Under GST, without any such specific exemption, it is still open for litigation, and hence advisable to pay 18% GST over such chilling charges....

okay sir thanks for the clarification

hello sir
please provide conclusion gst liability arise on intermediary person or not??