Supply of Goods through PDS not exempted from GST: AAR [Read Order]

The Authority for Advance Ruling in West Bengal ruled that Supply of goods through PDS is not exempt and hence is liable to pay GST.

The Authority ruled that the Supply of goods through PDS is not exempt under Notification No.212017 – CT (Rate) dated 28/06/2017, as amended from time to time or any other notification and is, therefore, liable to pay GST at the applicable rate on his supplies of goods through PDS.

The Applicant, Dipeet Agarwal, supplies consumer goods like biscuits, soaps etc. earmarked ‘FOR PDS SUPPLY ONLY’ to fair price shops/PDS distributors. He sought a ruling on whether he is liable to pay GST on such supplies of goods.

The applicant argued that by supplying consumer goods earmarked ‘FOR PDS SUPPLY ONLY’ to fair price shops/PDS distributor he acts as an associate of the West Bengal Essential Commodities Supply Corporation Ltd against payment of a monthly administrative charge at a rate fixed by the Government of West Bengal. The Applicant further argued that he bears all cost and charges, including packaging, loading, railway freight, demurrage etc., and bears all the risk associated with transportation, warehousing and quality of the products. He also pointed that he Supplies the goods at the price and to the recipients fixed by the Government.

The Authority comprising of Ms Susmita Bhattacharya, and Mr. Parthasarathi Dey, however, did not allow the pleas of the Applicant and ruled that Supply of goods through PDS is not exempt and hence the Applicant is liable to pay GST at the rate applicable.