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GST: Technical Testing and Analysis Services comes under Taxable Services, says AAR Kerala [Read Order]

Technical Testing - GST - Taxscan

In a recent case, the Kerala Authority for Advance Ruling (AAR) held that the technical testing and analysis services under Goods and Servicer Tax come within the purview of other professionals, technical and business services. So the GST is applicable to other professional and technical business services when the aggregate turnover to be computed on all India bases in a financial year exceeds the threshold limit of RS 20 lakhs.

The brief fact of the case is that the applicant is engaged in the business of conducting fire assay testing. Fire assaying is one of the industry-standard processes for testing gold purity for the purpose of awarding certificates. Fire assay test is conducted to know the percentage of pure gold and other alloys present in the gold specimen. And the question in consideration is whether the applicant is liable for tax for the services rendered in the form of quality testing and certification of gold ornaments and also whether he is liable for the GST if the total turnover of the applicant below RS 19 lakhs per anum.

The applicant submitted that he collected gold specimen from the customers and based on the analysis fire assay certificate issued specifying the percentage of gold. If the gold content is 91.6% or more 916 hallmark certificates is issued. So the activity done by the applicant does not come under the taxable services and not liable for the GST under the Act.

The authority comprising of members B.G. Krishnan, Joint Commissioner of Central Tax and B.B Thyagarajababu Joint Commissioner of State Tax held that the applicant is engaged in goldsmith services such as quality testing, hallmarking, and certifying the percentage of purity of gold ornaments. The technical testing and analysis services under goods and servicer tax come under other professionals, technical and business services. So the GST is applicable to other professional and technical business services and also the activity of jewellery manufacturing services like gold maintenance and repair works on goods owned by others is a job work. As per section 22 of CGST /SGST act 2017, every supplier of services is required to obtain registration only when his aggregate turnover to be computed on all India bases in a financial year exceeds the threshold limit of RS 20 lakhs.

To Read the full text of the Order CLICK HERE
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