Job work services provided on goods belonging to other registered persons are taxable at 12% under GST: AAR

Case Details: Authority for Advance Rulings, Karnataka Sheen Electroplaters (P.) Ltd., In re - [2022] 134 taxmann.com 45 (AAR - KARNATAKA)

Judiciary and Counsel Details

• • Dr. M.P. Ravi Prasad and T. Kiran Reddy, Member
  • K. Udayashankar Manja, AR for the Appellant.

Facts of the Case

The applicant was engaged in the business of plating Industry, approved for Electroplating and surface treatment of aerospace and non-aerospace components. It received various components under delivery challan from customers and returned same after providing job work services on goods (physical inputs) belonging to registered persons. It also purchased various raw materials for providing its output services. It filed an application for advance ruling to determine taxability of job work services provided by it.

AAR Held

The Authority for Advance Ruling observed that job work services by way of treatment or processing undertaken by a person on goods belonging to another registered person would be covered under clause (id) of entry number 26 of the Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017. In the instant case, the applicant would be providing the job work services on the goods belonging to registered persons and hence it would be covered under clause (id) of entry number 26 of the Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017, as amended and accordingly would attract GST rate of 12%.