TaxTMI 
TaxTMI 
2026 (8) TMI 1742
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....the RGST Act, 2017, this Advance Ruling pronounced under Chapter XVII of the Acts shall be binding only: (a) on the applicant who had sought it in respect of any matter referred to in Section 97(2) of the Acts; and (b) on the concerned officer or the jurisdictional officer in respect of the applicant. 3. In terms of Section 103(2) of the CGST Act, 2017 and the RGST Act, 2017, this Advance Ruling shall be binding unless the law, facts or circumstances supporting the original ruling have changed. 4. Under Section 104(1) of the CGST Act, 2017 and the RGST Act, 2017, where the Authority finds that the Advance Ruling has been obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of the Acts or the Rules made thereunder shall apply to the applicant as if such Advance Ruling had never been made. 5. Any appeal against this Advance Ruling shall lie before the Appellate Authority for Advance Ruling, Rajasthan, in terms of Section 100 of the CGST Act, 2017 and the RGST Act, 2017. Such appeal shall be filed within thirty days from t....
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....the scope of "job work" as defined under the CGST/RGST Act, 2017. 1.3 Entry No. 26 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended by Notification No. 46/2017-Central Tax (Rate), dated 14.11.2017, prescribes GST at the rate of 5% on "services by way of job work in relation to handicraft goods". 1.4 Further, "handicraft goods" have been defined under Notification No. 32/2017-Central Tax dated 15.09.2017. The product of the applicant i.e. brass statues possesses craftsmanship value and are understood to qualify as handicraft goods within the meaning of the said notification. 1.5 The applicant submits that the raw brass will be supplied to the job workers for the purpose of carrying out the job work processes. Therefore, the applicant's understanding is that job work services in relation to such handicraft goods will be covered under Entry No, 26 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended by Notification No. 46/2017-Central Tax (Rate), dated 14.11.2017. In relation to Question No. 2 2.1 The applicant submits that Resin statues are original sculptures and statuary. Having regard to the product, the applican....
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....e appeared for personal hearing. He reiterated the submission already made by the applicant. F. DISCUSSIONS AND FINDINGS 1. At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / RGST Act would be mentioned as being under the "GST Act". 2. We have gone through the application filed in FORM GST ARA-01 along with the annexures thereto, the statement of relevant facts, the interpretation of law put forth by the applicant, and the submissions made by the learned authorized representative at the time of personal hearing held on 13.07.2026, wherein he reiterated the submissions already made in the application. Since the applicant is un-registered, comments of the jurisdictional officer were not called for. We now proceed to decide the questions on the basis of the material avail....
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....uld be the actual suppliers of such services. 5. Question No. 1: The first question is related to the rate of GST on job work services in relation to handicraft items of brass, where raw brass falling under HSN 7403 would be sent for processing and brass statues falling under HSN 8306 would emerge, and whether the same rate would also apply to job work services on handicraft items of wood covered under HSN 4420. To understand the issue, we may first refer to Section 2(68) of the GST Act, which defines "job work" to mean any treatment or process undertaken by a person on goods belonging to another registered person, and the expression "job worker" is to be construed accordingly. Section 143 of the GST Act permits a registered principal to send inputs to a job worker without payment of tax, subject to the conditions prescribed therein. The rate of tax on job work services is governed by SI. No. 26 (Heading 9988 - Manufacturing services on physical inputs (goods) owned by others) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 and the corresponding State notification. 6. The applicant has placed reliance on item (i) of the said SI. No. 26, as amended by Notificat....
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.... wooden handicraft items, would, therefore, answer the description of handicraft goods, but only where such goods are in fact made by craftsmen predominantly by hand. Whether this condition is satisfied is essentially a question of fact, which would have to be seen in respect of each supply, and therefore, we refrain from recording any general finding in this regard. 9. There is, however, one aspect which cannot be lost sight of. As noticed above, the definition of "job work" under Section 2(68) of the GST Act takes within its fold only such treatment or process as is undertaken on goods belonging to another registered person. The applicant, as on date, is un-registered. So long as he remains un-registered, any treatment or process undertaken by the processors on goods belonging to him would not amount to "job work" in the eyes of the law, and the concessional entry meant for job work in relation to handicraft goods would consequently not be available; such services would instead fall within the residual item (vii) of the substituted SI. No. 26, namely, services by way of any treatment or process on goods belonging to another person, attracting GST at 18% (CGST 9% plus SGST 9%).....
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....rticles produced commercially, generally by casting or moulding in multiples. In our view, such articles cannot be regarded as original sculptures or statuary, and the applicant's claim for classification under heading 9703 cannot be accepted. 12. The question then is where such articles would properly fall. Resin is an artificial or synthetic plastic material, and in terms of Note 1 to Chapter 39 of the Customs Tariff, the expression "plastics" covers such materials. Articles of plastics not elsewhere specified are covered under heading 3926, and sub-heading 3926 40 specifically covers statuettes and other ornamental articles. We therefore hold that resin statues merit classification under tariff item 3926 40 29 (statuettes: other) and ornamental resin vases under tariff item 3926 40 99 (other ornamental articles) of the Customs Tariff, and not under tariff item 9703 00 90. We may add that if, in a given case, a particular article is shown to be an original sculpture or statuary executed by the artist, satisfying the requirements of Chapter 97 read with the Chapter Notes, classification under heading 9703 could arise; no such facts are, however, before us. 13. Question N....
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.... more specifically under tariff item 6802 91 00 (other: marble, travertine and alabaster). Deities made of wood, being in the nature of statuettes and ornaments of wood, fall under heading 4420, and more specifically under tariff item 4420 11 00 where made of tropical wood, or tariff item 4420 19 00 where made of any other wood, depending upon the species of wood used. 16. Before providing the ruling, we ought to make it clear that this ruling is confined to the facts as pleaded and verified by the applicant in FORM GST ARA-01 and, in terms of Section 103(2) of the GST Act, shall remain binding unless the law, facts or circumstances supporting it undergo a change. Nothing contained herein shall be construed as a finding that any particular goods do, in fact, answer the description of 'handicraft goods' or of 'deities'; these are questions of fact which would have to be examined in respect of each supply as and when made. G. In view of the foregoing facts, circumstances and provisions of the GST law, we pass the following ruling: RULING Q1) What is the GST rate applicable on job work services in relation to handicraft items made of brass. The raw brass wi....