The Maharashtra Authority of Advance Ruling (AAR) held that 5% GST on Job work services by Garware industries.
The applicant, Garware Industries Limited (GIL) is a GST registered flagship company of the Garware Group and manufactures and sells all Jypes of Polyester films like Plain Films, Laminated films/Sun control film manufactured from Dyed films, PPF Films etc. GPL sends Plain Polyester Films along with all other required input (collectively referred to as ‘inputs) to GIL for Manufacturing/converting of Plain Polyester films into Dyed/Laminated/TS Films on Job-work basis. (Using all types of Polyester Film as input) and also sends base film/TPU films for manufacturing of PPF films and TPUfilms as raw materials.
The Dyed/TS/Laminated Films, which come into existence after the process conducted on the raw materials including Polyester films supplied by GPL, are sent back within the period of one year as required under Section 143 (1) (a) of the CGST Act, 2021.
The applicant has sought the advance ruling on the issue whether as per Notification no. 20/2019 dated 30/09/2019, services provided by Garware industries Limited falls under clause (id) Heading 9988.
The coram of Members Rajiv Mago and T.R.Ramnani ruled that the Impugned services provided by applicant falls under clause (id) Heading 9988.
“Since no new product comes into existence after the process conducted by the applicant on the raw materials supplied by GPL, therefore the process undertaken will come under the purview of job work as defined under Section 2 (68) of the GST Act, 2017. Thus, in view of the above we find that, the applicant is only a job worker to GPL and as a job worker, carries out processes on goods i.e. Polyester Films supplied by the principal i.e. GPL,” the AAR noted.Subscribe Taxscan AdFree to view the Judgment