2019 (5) TMI 904

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.... M/s. Irene Rubbers is a job worker engaged in production of Rubber backed and rubber edged coir mats and polypropylene mats of various designs and size as required by the principal on the materials provided by the principal. The materials like coir mats and mattings covered under HSN 5702 and tufted carpets covered under HSN 5703 are supplied by the principal for executing job works along with m....

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....falling under Chapter heading 5702 and 5703 is liable to CGST at the rate of 2.5% under Entry No.26 (i)(b), Notification No. 11/2017-CT(R) dated 28.06.2017 (Corresponding 2.5% under Kerala (GST)? The authorized representative was heard. It is stated that manufacturing services on physical inputs owned by others are as service by way of job work. As such this service is covered under SAC 9988. S....

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....ices of job work. The services are performed on physical inputs owned by units other than units providing the services. As such, they are characterized as outsourced portions of a manufacturing process or a complete outsourced manufacturing process. Under job work services, the output is not owned by the unit providing this service. Therefore, the value of the services is based on the service char....

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....refore the job work services applied on such goods squarely come under Sl.No. 26 (i)(b) of Notification 11/2017 CT (Rate) dated 28.06.2017 and taxable @ 5% GST. In view of the observations stated above, the following rulings are issued. (i) Whether the process and treatment carried out on the goods belonging to the principal and made available by the principal amounts to job work? ....