GST Rate on Shrimp Processing

[Rajendra Prasad]

Dear Sir,

What is the GST tax rate for Job work of Shrimp Processing .

Job Work Involves Cleaning , Deveining , Peeling , Cutting of Tail and Head etc.

1.Is it manufacturing .

2.Can we apply special rate for foods products.

3. Is it covered under 9988 or 9997.

Please clarify.

[KASTURI SETHI]

1. It does not amount to manufacture.

2. No. covered under Serial no.26(1)(f) of Notification No.11/17-CT(Rate) dated 28.6.17 as amended up to 30.9.19. So rate of tax is 5%.

3. Covered under HSN : 9988

[Rajendra Prasad]

Dear Sir,

Thank you for your reply. The chapter for 9988 starts with the word manufacturing services . But shrimp processing is not manufacturing.

Then how 9988 is applicable. Chapter heading or entry , which is to be considered for our present issue.

Please clarify.

[KASTURI SETHI]

Your product is classified under Chapter/Heading No.0301.

(f) All food and food products falling under Chapters 1 to 22 of GST Tariff are specifically covered under Serial No.26(1)(f) for job- work under HSN 9988. Six digit HSN is 998812. When it is specifically covered, you cannot go to residuary entry in (id) or (iv). HSN 9997 is not relevant at all. Here is no question of "Whether process amounts to manufacture or not ?" This question arises when your activity falls under 'Other Than' i.e. (id) or (iv). Also the phrase, "Manufacturing Services' has not been defined.

[Ganeshan Kalyani]

Sri Kasturi Sir , you have clarified the doubts beautifully. The air is clear. When the rate is specifically provided in the serial number then no need to go for the residual entry of the same serial number. Thanks.

AI Summary

Clarification: Shrimp Processing as Job Work is Not Manufacturing, Subject to 5% GST under HSN 9988 per Notification No.11/17-CT(Rate). A query was raised regarding the GST rate for job work in shrimp processing, which includes tasks like cleaning and deveining. It was questioned whether this constitutes manufacturing and if a special rate applies. Kasturi Sethi clarified that shrimp processing is not manufacturing and falls under HSN 9988 with a 5% GST rate, as per Notification No.11/17-CT(Rate). Rajendra Prasad expressed confusion about the classification under manufacturing services, to which Sethi explained that the classification is based on specific serial numbers in the GST tariff. Ganeshan Kalyani appreciated the clarification provided by Sethi.