GST on By-Products of Milling of Dal/Pulses

The Goods and Services Tax (GST) was introduced in India on 1st July 2017 to simplify the system of indirect taxation in the country. GST is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. The idea behind GST was to create a unified tax structure and to simplify and streamline the indirect tax system.

However, there are still many nuances of the GST system that are not clear to everyone. One such area is the GST on by-products of milling of dal/pulses such as Chika, Kahnda, and Churi. In this article, we will take a closer look at this topic.

What are by-products of milling of dal/pulses?

Dal/pulses are a staple food in India and are consumed by millions of people every day. The process of milling dal/pulses involves removing the outer layer of the seeds, which results in the production of by-products such as Chika, Kahnda, and Churi. These by-products are used in various ways, such as animal feed, as ingredients in snacks, and in the production of other food items.

What is the GST rate on by-products of milling of dal/pulses?

The GST rate on by-products of milling of dal/pulses such as Chika, Kahnda, and Churi is 5%. This is the same rate as the GST on the dal/pulses themselves. The 5% GST rate applies to all by-products of dal/pulses, regardless of how they are used or consumed.

Is there any exemption or concession available for by-products of milling of dal/pulses?

There is no exemption or concession available for by-products of milling of dal/pulses under GST. This means that businesses must register for GST and pay the 5% tax on all sales of these by-products.

How to calculate GST on by-products of milling of dal/pulses?

To calculate GST on by-products of milling of dal/pulses, businesses need to follow the same process as they would for any other product or service. The GST rate is 5%, so businesses need to add 5% to the selling price of their by-products. The GST amount can then be calculated by multiplying the selling price by 5%.

Conclusion

By-products of milling of dal/pulses such as Chika, Kahnda, and Churi are subject to the 5% GST rate under the GST system in India. There are no exemptions or concessions available for these by-products. Businesses that deal in these by-products must register for GST and pay the 5% tax on all sales of these by-products.