GST not leviable on handling charges of PDS distribution of Dhothies & Sarees/ School Uniforms to the state government

Last updated: 21 January 2022

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The Tamil Nadu AAR has ruled that handling charges for the distribution of sarees, dhothies, and school uniforms under public distribution schemes are exempt from GST. The Authority determined that these activities, including inspection, storage, and transportation, constitute 'pure services' provided to the state government. Therefore, they fall under an existing exemption notification and do not attract GST.

Court :
AAR, Tamil Nadu

Brief :
The AAR, Tamil Nadu in the matter of M/S. Handloom Weavers Cooperative Society Ltd. [Advance Ruling No. TN/47/ARA/2021 dated December 30, 2021] held that, the services rendered by the assessee towards handling of Dhothies & Sarees/ School Uniforms from Co-operative Societies to Public Distribution System / Revenue Department are exempted from payment of GST. Further held that, undertaking the activities of inspection, collection, storage, transportation, etc., are 'Pure Services' even if the supply is a composite supply.

Citation :
Advance Ruling No. TN/47/ARA/2021 dated December 30, 2021

Daily Limit Reached