GST ON POWDER COATING

[Asha D]

Dear Sir,

As per the discussion I understood that the GST @12% is applicable in case of jobwork of powder coating but I have query that whether the same rate is applicable if the jobwork done is of unregistered or GST @18% will be applicable in case of unregistered

[Atul Rathod]

It shall be 18% as it will amount to “treatment or process done to goods owned by others” where as job work means “treatment or process done to goods owned by registered person”

12% -job work which means for registered person

18%- for unregistered person

[Asha D]

Thanks for the reply. I have one more query> In case of person dealing in power coating jobwork only but charging GST@18% since beginning. As per this notification he supposed to to charge GST@12% only. So question is that whether he can change the charging GST @12% in mid of the year i.e. from now onwards?? Or we need to wait till completion of the year.

[Atul Rathod]

There is no concept of mid of the year or financial year. Earlier there was 18% rate for job work. On 30.10.2019-notification was issued for rate of job work-12%.

The same shall be effective from 01.10.2019, thereby you shall charge 12% from 01.10.2019 if the same provides to registered person and it amounts to manufacture

AI Summary

GST rate on powder coating clarifies lower rate for registered-person jobwork and higher rate for treatment of others' goods. Powder coating attracts the lower GST rate when it is job work - a treatment or process on goods owned by a registered person that amounts to manufacture; treatment of goods owned by unregistered persons attracts the higher rate. A rate notification is effective from its operative date, so suppliers must charge the rate specified from that date when the supply meets the job work and manufacture criteria.