Sir,
1.I am Grinding Crystal Sugar for clients on contractual basis. Crystal Sugar is supplied by clients and is ground and bulk packed by me. Ground Sugar (Pulverized Sugar) is then transported back to client. I get paid for my Job work. What will be SAC Code for this activity and percentage of GST.
2.The Freight for finished good (in this case pulverized sugar) that I transport to the client is paid by me. What is the GST percentage on transportation and how do I raise the Tax Invoice for the same. Am I eligible for ITC in this case and how.
Regards.
Murtaza
Debate on GST Rate for Grinding Crystal Sugar: 12% under SAC 9988 or 5% as Food Product? A user inquired about the appropriate SAC code and GST rate for grinding crystal sugar on a contractual basis, where clients supply the sugar, and it is ground and returned to them. The discussion revealed differing opinions on the GST rate, with one participant suggesting a 12% rate under SAC code 9988, while another argued for a 5% rate, citing it as a food product under Chapter 1701. The conversation also covered GST implications on transportation costs and eligibility for Input Tax Credit (ITC), emphasizing the importance of client registration and the role of the freight payer. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
