sir, one of my client is engaged in Adhesive coating business. He receive the various types of bolts from automobile industry for adhesive coating on them, he purchase the adhesives from other sate and do the coating process on the bolts received from the principal. The cost of adhesive comes around 50% of his invoice value.
His cutomers argue with him that this process ( coating process) comes under Job work with 12% GST only.
But we have doubt whether it should be taxed @18 % GST based on the following,
1.The adhesive is not supplied by the principal it is purchased by us.
2.The coating enhance the product torque quality
kindly confirm whether we should charge GST @18% , if yes what should be the HSN/SAC
Adhesive Coating Service GST Rate Debate: 12% as Job Work or 18% Under HSN 9988 Manufacturing Services? A client in the adhesive coating business is uncertain about the appropriate GST rate for their services. The client purchases adhesives and applies them to bolts from the automobile industry, with adhesive costs comprising 50% of the invoice value. Customers argue this process qualifies as job work taxed at 12% GST, but the client questions if it should be 18% under 'Manufacturing Services' since the adhesive is not supplied by the principal. Experts suggest the process does not amount to manufacturing as no new product emerges, thus attracting 18% GST under HSN 9988. The ambiguity arises due to undefined terms like 'Manufacturing Services' in GST laws, leading to differing interpretations. (AI Summary)
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