GST APPLICABLE ON JOBWORKER

[BIJU CHACKO]

Our company receives Plastic masterbatch from registered dealers for grinding and polishing as job work. After job work we return the material to the party. Pl advise the GST applicable rate, can get ITC or not , SAC code.

AI Summary

Company Faces 18% GST on Grinding/Polishing Plastic Masterbatch Under SAC 998898; ITC Eligibility Questioned A company inquires about the applicable Goods and Services Tax (GST) rate for job work involving grinding and polishing plastic masterbatch received from registered dealers. The consensus among respondents is that the company must pay GST on the processing charges received, with a rate of 18% under SAC code 998898. It is clarified that the activity qualifies as a supply of services, as per Schedule II of the CGST Act, and GST is payable on the consideration received. The company seeks advice on whether they can claim Input Tax Credit (ITC) and the relevant SAC code.