TaxTMI 
TaxTMI 
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.
Job work or contract manufacturing.
12 Feb 2020 
6 Replies 
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Job work classification: finishing and painting of customer-owned wooden tops treated as job work, generally attracting reduced GST rate.
Finishing, polishing and painting of wooden tops supplied by a registered principal are job work under the CGST definition, since the goods remain the principal's and the processes do not create a new product; the job worker may use his own inputs. Such activity is classified as job work for GST purposes and is generally subject to the lower job-work rate when goods belong to a registered person, though rate uncertainty arises if the process is characterized as manufacture or the goods belong to an unregistered person. (AI Summary)
Finishing, polishing and painting of wooden tops supplied by a registered principal are job work under the CGST definition, since the goods remain the principal's and the processes do not create a new product; the job worker may use his own inputs. Such activity is classified as job work for GST purposes and is generally subject to the lower job-work rate when goods belong to a registered person, though rate uncertainty arises if the process is characterized as manufacture or the goods belong to an unregistered person. (AI Summary)