Rate of tax on Ginning of cotton

[Abhimanyu Juneja]

Please let me know the rate of tax on service provided as job worker for ginning of cotton.

[KASTURI SETHI]

This service is specifically classified under HSN 998611 and it attracts GST @ 12%. HSN 9988 for raw cotton (Chapter 52) which attracts GST @5% is not relevant here. Also see Schedule-II (Clause 3).

[KASTURI SETHI]

In continuation of my reply above, it is presumed that goods belong to a registered person.

AI Summary

Service classification for cotton ginning treated under HSN 998611 as taxable supply, not the raw cotton rate. Ginning cotton provided as job work is classified under HSN 998611 and attracts GST @ 12% as a service; the raw cotton classification under HSN 9988 (Chapter 52) at a lower rate is not relevant. The service characterization is guided by Schedule II (clause 3) and assumes the goods belong to a registered person.