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 for Powder Coating: 12% for Registered, 18% for Unregistered; New Rate Effective October 1, 2019 A discussion on the applicable Goods and Services Tax (GST) rate for powder coating job work highlights that a 12% GST applies to registered persons, while an 18% rate applies to unregistered persons. A participant queries whether a business charging 18% since the beginning of the year can switch to 12% mid-year following a notification. The response clarifies that the 12% rate became effective from October 1, 2019, and should be applied from that date for registered persons, irrespective of the financial year timeline.