PDS distribution goods

This discussion clarifies the GST implications for kerosene distributed through the Public Distribution System (PDS). According to Circular 80/54/2018 GST and a West Bengal AAR ruling, the supply of goods from Indian Oil Company (IOC) to fair price shops or PDS distributors is taxable under GST. However, the subsequent supply of these goods by fair price shops or PDS distributors to the ultimate consumer is exempt from GST.