The Karnataka Authority of Advance Ruling (AAR) ruled that 12% GST on job work services such as anodizing, plating, on goods/materials belonging to registered persons.
The Applicant, ALCOATS has been engaged in providing job work services by carrying out the process such as anodizing, plating on the materials sent by its customers on job work basis i.e., manufacturing services on physical inputs (goods) owned by others. Applicable SAC Code for their services is 998873 – Other fabricated metal product manufacturing and metal treatment services.
The applicant has sought the advance ruling on the issue in respect of Applicable rate of GST for our activity when it is provided to registered person, as per Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 as amended time to time and clarification Circular No.126/45/2019-GST dated 22-11-2019 serial number 26 of the said notification as amended time to time specifies tax rate for the heading 9988 (manufacturing services on physical inputs (goods) owned by others), Whether our activity falls under item number (id) which attracts 12% tax rate (GSTs at 6%) or whether it falls under item number (iv) which attracts 18% tax rate (GSTs at 9%)
The coram of M.P.Ravi Prasad and T.Kiran Reddy ruled that The job work services undertaken by the applicant by way of treatment or processing such as anodizing, plating, on the goods / materials belonging to the registered persons are covered under clause (id) of entry number 26 of the Notification No.11/2017-Central Tax (Rate) dated 28.06.2017, as amended and accordingly attract GST rate of 12%.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
