Job work services on pharmaceutical Drugs are classifiable under Heading 9988 & taxable at 12%: AAR

Case Details: Authority for Advance Rulings, Gujarat Romano Drugs (P.) Ltd., In re - [2021] 131 taxmann.com 114 (AAR - GUJARAT)

Judiciary and Counsel Details

• • Sanjay Saxena and Arun Richard, Member
  • Dharmendra Shah, CA for the Applicant.

Facts of the Case

The applicant was engaged in providing job work services on Diphenylmethoxy’N, N-diethylaminethanol HCI (Job work of pharmaceutical Drugs). It filed an application for advance ruling to determine rate of tax and classification of job work services on pharmaceutical drugs.

AAR Held

The Authority for Advance Ruling observed that as per the CBIC Circular providing clarification on entry ‘id’ of Heading 9988 at Sl. No. 26 of Notification No. 11/2017-CT (R) dated 28-6-17, it was clarified that if any service provided by way of treatment or processing undertaken by a person on goods belonging to another registered person then it would be considered under the Job work service and would be liable at 12% GST. Therefore, in the present case, the services of job work of applicant would fall under Heading 9988 and GST would be levied at the rate of 12%.