2019 (5) TMI 904

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....er 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 moulds in the required designs. The....

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....iable 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. Services by way of job work in relation to Textiles....

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....sical 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 charge paid, not the value of the goods manufactured. T....

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....quarely 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? Yes. Manufacturing services on physical inputs owned by the ....