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%.
GST Applicability on Manufacturing Services: Do Molding and Machining Activities Qualify as 12% Work Contract? A manufacturing and processing unit inquires about the applicability of GST on contract services related to manufacturing activities such as molding, fettling, finishing, and machining, which are performed by contractors using the unit's machines, materials, and supervision. The question concerns whether these activities qualify as a work contract and are subject to a 12% GST rate. A respondent clarifies that work contracts under GST typically apply to immovable property, implying that the described activities might not fall under this category. (AI Summary)
TaxTMI 
TaxTMI 
