Clarification required whether Adhesive coating is job work or not

[RAMKUMAR DURAI]

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

AI Summary

Classification of adhesive coating as manufacturing service affects GST rate; use service description not HSN for correct treatment.
Adhesive coating that does not produce a new product or change the goods' character is not "manufacture" under Section 2(72) and is best characterised as a supply of service; use of the job-worker's own material (substantial in value) places the activity outside the statutory job-work definition, making classification dependent on service description rather than HSN and creating persistent uncertainty until "manufacturing service" is defined.