TaxTMI 
TaxTMI 
2025 (7) TMI 383
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....ins & returned to the clients; • that these rolls are used in the production of zari/metallic yarn, which is subsequently utilized in the making of sarees; • that their clients are registered with the department; • that their service is directly related to the textile industry. 4. The applicant has further stated that this application is on account of the ambiguity regarding applicable GST rate for the aforementioned job work that they render. The applicant has also stated that of the three rates of GST applicable in respect of job work, • the rate of 5% GST is applicable, if the job work, is considered as directly related to the manufacture of garments or fabric related products under certain conditions, given that the metallic film rolls are used to make zari/metallic yarn for sarees; • the rate of 12% GST is applicable, if the service, falls under job work related to textile processing, as defined in notification No. 20/2019-CT(Rate); • the rate of 18% GST does not qualify under the textile specific categories. 5. In view of the foregoing, the applicant has raised the following questions seeking ....
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....hat results in emergence of a new product having a distinct name, character and use and the term "manufacturer" shall be construed accordingly; Notification No. 11/2017-CT (Rate) dated 28.6.2017 26 Heading 9988 [Manufacturing services on physical inputs (goods) owned by others] (i) Services by way of job work in relation to- (a) Printing of newspapers; (b) Textiles & textile products falling under chapters 50 to 63 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); (c) all products [other than diamonds,] falling under chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975);] (d) Printing of books (including Braille books), journals & periodicals; [(da) printing of all goods falling under chapter 48 or 49 which attract CGST @ 2.5% or Nil;] (e) and (ea) .... (f) all food & food products falling under chapters 1 to 22 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); (g) all products falling under chapter 23 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975), except dog and cat food put up for retail sale falling under tariff item....
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....n to textile and textile products falling under chapters 50 to 63 in the first schedule to CTA '75 is leviable to GST @ 5% in terms of serial no. 26(i) while GST @ 12% is leviable in terms of serial No. 26(id) which is in respect of services by way of job work other than those mentioned at serial Nos. 26(i), (ia), (ib), (ic) & (ica). Further, in terms of serial no. 26(iv), GST @ 18% is leviable in respect of manufacturing services on physical inputs (goods) owned by others, other than those mentioned in 26(i), (ia), (ib), (ic), (ica), (id), (ii), (iia) and (iii). 12. CBIC, vide its circular No. 126/45/2019-GST dated 22.11.19, has clarified in respect of entries at serial No. 26(id) and 26(iv) for SAC 9988 of notification No. 11/2017-CT(R) dated 28.6.17, as under: 4. In view of the above, it may be seen that there is a clear demarcation between scope of the entries at item (id) and item (iv) under heading 9988 of Notification No. 11/2017-Central Tax (Rate) dated 28-062017. Entry at item (id) covers only job work services as defined in section 2 (68) of CGST Act, 2017, that is, services by way of treatment or processing undertaken by a person on goods belonging to ano....
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....sing the job work charges. Nothing is mentioned in the delivery challan as to whether the goods supplied by M/s. Gurukrupa Mettalic is a textile and textile product falling under chapter 50 to 63 of CTA '75 The HSN of the metallic film rolls supplied by the principal is not mentioned. As the applicant has failed to establish that metallic film rolls, the item supplied by the principal is an item falling under textiles and textile products, they are not eligible for the benefit of serial No. 26(i)(b) of the notification, ibid. Our view is also substantiated by the view of the Hon'ble Supreme Court in the case of All India Federation of Tax Practitioners, supra 15. Having so held, we find that the job work activity undertaken by the applicant would fall within the ambit of serial No. 26(id) & would be leviable to GST @ 12%. Incidentally, even in the invoice raised by the applicant, for collection of job charges, reproduced above, they are charging 12% GST. 16. In view of the foregoing, we rule as under: RULING a) The applicable GST rate for job work involving the cutting of metallic film rolls is 12% in terms of serial No. 26(id) of notification No. 11/2017-CT (R)....