The West Bengal Authority for Advance Ruling (AAR) has held that Instant composite supply of service of milling of food grains into flour to Food and Supplies Department, Govt. of West Bengal attracts Nil GST. The applicant, Himalayan Flour Private Limited has entered into an agreement with the District Controller of Food and Supplies, Government of West Bengal for supply of fortified wholemeal atta. According to the said agreement, the State Govt. (Food & Supplies Department) sends the whole, unpolished food grain to the applicant for crushing and processing it into flour. The applicant returns the flour(atta) packed in the manner as the State Govt. requires by fortifying the crushed grain with the vitamin which is then distributed through the Public Distribution System (PDS) by the State Govt on behalf of Food and Supplies Department, Govt of West Bengal.
Source Taxscan
