12% GST on Cutting Metallic Film Rolls for Sarees | AAR

Case Details: Kanika Exim, In re - [2025] 176 taxmann.com 150 (AAR-GUJARAT)

Judiciary and Counsel Details

• Amal Shukla & Vishal Malani, Member
• Tirthraj Monpara, Ashish Laheri, CAs & Kaushik Vaholiya, Partner for the Applicant.

Facts of the Case

The applicant was engaged in providing job work services, specifically cutting metallic film rolls. The process involved receiving metallic film rolls, cutting them, and returning the processed film rolls to the client. The applicant cut metallic film rolls into specific dimensions, after which they are wound onto bobbins & returned to the clients. These rolls are used in the production of zari/metallic yarn, which is subsequently utilised in making sarees. The applicant contended that the job work would be directly related to the textile industry. The ambiguity was regarding the applicable GST rate for the job work they render. The applicant had raised various questions seeking a ruling from the Authority for Advance Ruling (AAR).

AAR Held

The Gujarat AAR ruled that the job work activity undertaken by the applicant would fall within the ambit of serial No. 26(id) & would be leviable to GST @ 12%. The service provided by the applicant is classifiable under serial No. 26(id) of the notification No. 11/2017-CT (R), and is leviable to GST @ 12%.

List of Cases Referred to

• All India Federation of Tax Practitioners v. Union of India 2008 taxmann.com 1072 (SC) (para 14).