Query -1 

What is GST rate of tax on services relating to chilling of milk etc. ?

Reply :

Chilling charges fall under the ambit of GST . The  services of chilling the milk etc are not specifically mentioned in the List Of Services taxable at the rate of 5% , 12% , 18% or 28%. Hence such services of chilling milk etc. will fall under the Category of ” All other services not specified elsewhere “in the list of services to be taxed at the rate of 18% .

Thus the GST rate of tax on chilling charges shall be 18% .

Query-2 :  

Whether the monthly rent of chilling centers located within the State or located outside the State will attract  GST ?

Reply :

The monthly rent of the premises hired for chilling the milk shall attract GST and the GST rate of such rent shall be 18% because such services are not specifically mentioned in the  List Of Services taxable at the rate of 5% , 12% , 18% or 28% .Such premises will be treated as fixed establishment of the recipient of such services as defined in clause (50) of section 2 of SGST/CGST Act , 2017.

Query-3 :

Whether the monthly  rent paid in respect of plant and machinery located at the chilling centers will attract GST ?

Reply : 

The monthly  rent paid in respect of plant and machinery located at the chilling centers will attract GST and the GST rate of tax shall be 18% because such services are not specifically mentioned in the  List Of Services taxable at the rate of 5% , 12% , 18% or 28%.

Query-4 :

What is the rate of GST on old dairy plant and machinery , old used  cars and other used equipments ?

Reply :

It is pertinent to note that Milking Machines and Dairy Machinery is listed at serial no. 198  of  Schedule-V of the Goods taxable at 12% Rate . There is no distinct classification of such old machinery . Thus the GST rate on old Milking Machines and Dairy Machinery is  12% .

Motor Cars are listed at Serial No. 165 of Schedule- VII of List of goods taxable at 28% rate . There is no distinct classification of old cars . Thus the GST rate on old cars is also 28% .

Query-5:

The registered manufacturing company sells its taxable products to nearly 125 small dealers in the State who have hardly turnover of 4 to 5 lakhs per annum . What will be liability of GST in such cases both on registered  manufacturing company as well as the small dealers ?

Reply :

Since the supplier manufacturing company is registered , it will charge CGST and SGST whose sum is equal to GST rates mentioned in  various Schedules in respect of the supplies of its product executed to the recipient persons of the State .

However since the recipients , as mentioned in the query , have annual turnover of supplies less than Twenty Lakh Rupees , the such recipient persons are not required to take registration because provisions of section 22 of the SGST/CGST Act do not apply on such persons simply because the aggregate of turnover in an year of such recipient persons is less than 20 Lakhs ( the threshold required for registration ) .

However if such recipient persons will execute any inter-State supply of any volume and price then such recipients will have to get themselves registered in the GST regime because they will fall in the ambit of section 24 of the SGST/CGST Act , 2017 which envisages the provisions relating to compulsory registration irrespective of the provisions embodied in section 22.

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