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Clarification on taxability of custom milling of paddy.


 Notice Date : 20 November 2017

Circular No. 19/19/2017-GST

F. No. 354/263/2017-TRU

Government of India

Ministry of Finance

Department of Revenue

Tax research Unit

****

North Block, New Delhi

20th November 2017

To,

The Principal Chief Commissioners/Chief Commissioners/ Principal Commissioners/

Commissioner of Central Tax (All) /

The Principal Director Generals/ Director Generals (All)

Madam/Sir,

Subject: Clarification on taxability of custom milling of paddy – regarding.

Representations have been received seeking clarification on whether custom milling of paddy by Rice millers for Civil Supplies Corporation is liable to GST or is exempted under S. No 55 of Notification 12/2017 - Central Tax (Rate) dated 28th June 2017.

2. The matter has been examined. S. No 55 of Notification 12/2017- Central Tax (Rate) exempts carrying out an intermediate production process as job work in relation to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce. Agricultural produce has been defined in the notification to mean, any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, 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. Job work has been defined under section 2 (68) of the CGST Act to mean any treatment or process undertaken by a person on goods belonging to another registered person. Further, under Schedule II (para 3) of the CGST Act, any treatment or process which is applied to another person’s goods is a supply of service.

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Guest
on 20 November 2017
Circular No : 19/2017
Published in GST
Source : , http://www.cbic.gov.in/htdocs-cbec/gst/circularno-19-cgst.pdf










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