Applicability of GST on work contact / intermediate operation to make finishhed goodsdone by contractor.

[MohanLal tiwari]

We are manufacturing & processing unit for castings & various machinery parts and getting the manufacturing activities like molding, fettling / finishing & machining etc done by different contractors in our shop. All the required machines, materials & supervision etc are provided by us.

Kindly advise whether above activities of contract service will fall under work contract and attract GST @12%.

[Himansu Sekhar]

As I know wcs in gst is for immovable property.

AI Summary

Work contract under GST may be confined to immovable property, affecting taxability of in shop contract manufacturing. Whether in shop contractor activities-molding, fettling/finishing and machining carried out using the manufacturer's machines, materials and supervision-constitute a work contract attracting GST is the core issue; the respondent observes that the work contract service in GST pertains to immovable property, leaving classification dependent on whether the operations relate to immovable property rather than contract manufacturing.