The services on Job works of goods owned by other registered persons attract 12% of Goods and Services Tax (GST) ruled by the Authority of Advance Ruling (AAR) of Chhattisgarh.
The applicant M/s Miura Infrastructure Private Limited, a registered dealer, engaged in the business of manufacturing of steel fabricated technological Steel Structures/ building structures and machined equipment.
The personal hearing was conducted and the authorized representative Nilesh Choudhary appeared before the authority to put forward the contentions.
The applicant contended that “Job Work” is defined under Section 2(68) Of Central Goods and Services Tax Act, 2017 as any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly.
Further, any process undertaken by the registered person on the goods owned by another registered person is a Job Work.
It was submitted that in the present case the applicant is a registered person and when they undertake fabrication/mochining /painting/ activities on the goods belonging to another registered person (customer), then the nature of work of the applicant is Job Work.
The authority observed that the applicant is awarded with a Work Order by Rungta Mines Private Limited (Customer) for fabrication of Technological Steel Structures Grade for Rolled Sections and plates as per technical specification of Essar Construction (Work).
It is further mentioned that the applicant is engaged in fabricating, welding, cutting, machining, blasting, and painting steel products in accordance with the technical requirements of the customer while utilising all other tools, tackles, machinery, jigs, and fixtures as necessary. These steel pieces were transformed into technological steel structures by the applicant.
The bench of members Sonal K. Mishra and Rajesh Kumar Singh ruled that if the job works services on goods owned by another registered person attract 12 % and if it is an unregistered person, then 18%.
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