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 %?
GST Rate for Powder Coating Services: 12% for Registered Persons, 18% for Others. Clarification on CGST and IGST Rates. A powder coating service provider inquired about the applicable GST rate for their services, noting they currently charge 18% GST. They questioned whether the rate should be reduced to 12%, given their purchase of raw materials at varying tax rates. A respondent clarified that if the job work is for registered persons under the CGST Act, the GST rate is 12% (6% CGST and 6% SGST), while for others, it remains 18% (9% CGST and 9% SGST). For interstate services, the rates are 12% IGST and 18% IGST, respectively. (AI Summary)
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