installation service, pure labour contract - JOB work - 12% or 18% - reg

[vivek kontact]

we are providing installation of equipments like, wiring of coaches, fitting of lights, fan etc in coaches and testing of coaches for coach to run the operations. all items and equipments are provided by Indian Railways and we with our technical skills, our people, and consumables, we execute the work. will this so called JOB WORK or services will fall under the definition of JW and what rate of tax shall be applicable, 12% or 18% w.e.f 01.10.2019. only after we finish our work, and further work by railway people, the coach manufacturing can be completed wholly. in erstwhile service tax, these job work services, was exempted under clasue 30(C) of notification 25/2012. any job worker or intermediary process, amounting to manufacturing activity........like that.

AI Summary

GST on Railway Coach Installation Service: Not Job Work, 18% Tax Rate Applies, Not 12% as Claimed by Service Provider. A discussion on a forum centers around the Goods and Services Tax (GST) applicable to an installation service contract involving the fitting of equipment in railway coaches. The service provider queries whether their work qualifies as 'job work,' which would attract a 12% tax rate. However, several respondents argue that since the service does not constitute manufacturing, it does not qualify as job work, and the applicable GST rate should be 18% under the category of other installation services. The consensus is that the service falls outside the job work definition, thus attracting the higher tax rate.