GST APPLICABLE ON JOBWORKER

[Asked by 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

Supply of services: job work processing attracts GST and is taxable on processing charges under service classification.
Job work consisting of treatment or processing of another's goods is a supply of services under Schedule II; GST is payable on the consideration received for the processing charges and the activity should be classified under the applicable service accounting code with standard taxable treatment and conditional exemptions. The availability of input tax credit was raised but not definitively answered in the responses, so taxpayers should check relevant notifications and conditions before claiming ITC.