GST APPLICABLE ON JOBWORKER

[Guest]

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.

[Ganeshan Kalyani]

You are liable to pay GST on the processing charges you receive from the customer.

[KASTURI SETHI]

SAC 998898 GST rate 18% with certain conditions and exemptions.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Kasthuri Sethi.

[MADAN RAHEJA]

In terms of S.No. 3 of Schedule II to CGST Act, any treatment or process which is applied to another person's goods is a supply of services. Thus even if some material is used by you in job-work, your activity is supply of service with GST payable on consideration received by you and under SAC Code as mentioned in reply of experts above.

[subramanian vijayakumar]

Yes you. Are liable for. Gst at 18%

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.