Rate of tax for powder coating services

[Asked by Guest]

Sir,

As I am having a powder coating unit, having GST number, doing job work for my customers @ 18 % GST applicable, I came to know that, rate of tax comes down to 12 %. But, my question is, I am purchasing raw material like powder coating powders @ 18%, chemical @ 5%, using electricity, involving labourers, how can this be a pure job work & is rate of tax applicable for us, 12 %?

[Rajagopalan Ranganathan]

Sir,

If you do the job work for registered persons (under CGST Act) the rate of tax is 12% (6% CGST & 6% SGST). For other persons it is 18% (9% CGST & 9% SGST). If the supply of service is inter state then the rate of tax is 12% IGST and 18% IGST.

AI Summary

GST rate for powder coating job work varies by recipient registration status; lower rate for registered recipients, higher otherwise.
Powder coating performed as job work to registered persons is taxed at 12% (6% CGST and 6% SGST); where supplied to unregistered persons the rate is 18% (9% CGST and 9% SGST). If the supply is interstate, the corresponding IGST applies at the lower or higher rate depending on the recipient's registration status.