Job work or contract manufacturing.

[Rajat Bakliwal]

My client is doing finishing ,polishing and paint work on ply (wood) table tops owned by an export firm .My client recieves these wooden tops at his factory for work through delivery challan by exporter.My client purchases polish, paint material himself and applies them over wooden tops.The cost of these paint finishing turns out to be substantial.After finishing, paint and polishing, he returns the finished goods back.What is this categorised as , a job work or contract manufacturing.Sac code 998831 or which one if it is contract manufacturing. Plz tell Gst rate also for the same Plz help.

AI Summary

Activity of Finishing and Painting Wooden Table Tops Classified as Job Work Under GST, 12% Rate Applies, SAC 998831. A client performs finishing, polishing, and painting on wooden table tops owned by an export firm. The client purchases the materials and applies them to the table tops, which are then returned to the exporter. The query seeks to determine if this activity is classified as job work or contract manufacturing under GST. Responses clarify that this activity is job work, as it involves processing goods of another registered person without creating a new product. The applicable GST rate for this job work is 12% under SAC 998831, despite the client's use of substantial materials.