Crystal Sugar Grinding activity on contractual basis

[Asked by Guest]

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

AI Summary

Job work on client supplied sugar attracts concessional GST rate and transport GST follows the freight bearer.
Grinding crystal sugar supplied by clients and returning pulverized sugar is job work; the principal must be GST-registered. Pulverised sugar is in Chapter 1701 and job-work for food products under heading 9988 (serial no.26(i)(f)) attracts GST at 5% per the relevant notification. If freight for returning goods is paid to a GTA, the party bearing the freight pays GST on transport and may claim ITC subject to ITC eligibility; invoices should reflect the nature of supply and who bears freight.