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

GST on shrimp processing as job work: specific tariff entry applies, so residuary classification is not permitted. Shrimp job work (cleaning, deveining, peeling, cutting) is treated as job work for food products under Chapters 1-22 and is specifically covered by Serial No.26(1)(f) of Notification No.11/17 CT(Rate), classified to Chapter/Heading 0301 and HSN 9988 (998812); the specific tariff entry governs the GST rate and excludes reliance on residuary job work entries such as HSN 9997, making the question whether the process amounts to manufacture irrelevant.