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Changes in Entry 26 of Notification no. 11/2017 Central Tax Rate as on 22/11/2019-

Clarification on manufacturing services on goods owned by others
  

Chapter, Section or Heading

Description of Service

Rate

Remarks

Heading 9988 (Manufacturing services on physical inputs (goods) owned by others)

(i) Services by way of job work in relation to-

2.5

(a) Printing of newspapers;

(b) Textiles and textile products falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975)

Substituted vide Notification No.-20/17 CTR dt. 22.08.2017

(c) all products other than diamonds falling under Chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975);";

Inserted vide Notification No.20/2019 CTR dt.30.9.2019

(d) Printing of books (including Braille books), journals and periodicals;

(da) printing of all goods falling under Chapter 48 or 49, which attract CGST @ 2.5% or Nil

Inserted vide Notification No.31/17 CTR Dt.13.10.2017

(e) Processing of hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975).

(ea) manufacture of leather goods or foot wear falling under Chapter 42 or 64 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) respectively;";

Inserted vide Notification No.1/18 CTR dt. 25.1.2018

(f) all food and food products falling under Chapters 1 to 22 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975);

Inserted vide Notification No.31/17 CTR Dt.13.10.2017

(g) all products falling under Chapter 23 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975), except dog and cat food put up for retail sale falling under tariff item 23091000 of the said Chapter

(h) manufacture of clay bricks falling under tariff item 69010010 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975);";

(i) manufacture of handicraft goods

Inserted vide Notification No.46/17 CTR 14.11.2017

(ia)Services by way of job work in relation to

6

Inserted vide Notification No.31/17 CTR Dt.13.10.2017

(a) manufacture of umbrella

(b) printing of all goods falling under Chapter 48 or 49, which attract CGST @6 %

(ib) Services by way of job work in relation to diamonds falling under chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975)

0.75

Inserted vide Notification No.20/2019 CTR dt.30.9.2019

(ic) Services by way of job work in relation to bus body building

9

(id) Services by way of job work other than (i), (ia), (ib) and (ic) above;

6

(ii) Services by way of any treatment or process on goods belonging to another person, in relation to-

2.5

Substituted vide N-20/17 dt. 22.08.2017

(a) printing of newspapers;

(b) printing of books (including Braille books), journals and periodicals.

(c) printing of all goods falling under Chapter 48 or 49, which attract CGST @2.5 % or Nil

2.5 or Nil

Inserted vide Notification No.31/17 CTR Dt.13.10.2017

(iia) Services by way of any treatment or process on goods belonging to another person, in relation to printing of all goods falling under Chapter 48 or 49, which attract CGST @6%.

6

Inserted vide Notification No.31/17 CTR Dt.13.10.2017

(iii) Tailoring services.

2.5

Substituted vide Notification No.1/18 CTR dt. 25.1.2018

(iv) Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia),(ib), (ic), (id), (ii), (iia) and (iii) above.

9

Inserted vide Notification No.20/2019 CTR dt.30.9.2019

 

As per Circular No. 126/45/2019-GST dt. 22.11.2019-

Job work has been defined in CGST Act as under.

"Job work means any treatment or processing undertaken by a person on goods belonging to another registered person and the expression ‘job worker’ shall be construed accordingly."

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 28-06-2017.

 

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 another registered person.

On the other hand, the entry at item (iv) specifically excludes the services covered by entry at item (id), and therefore, covers only such services which are carried out on physical inputs (goods) which are owned by persons other than those registered under the CGST Act.

Disclaimer: The contents of this article are solely for informational purpose. It does not constitute professional advice or a formal recommendation. No part of this article should be distributed or copied without express written permission of the author.


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Category GST, Other Articles by - Kusum Gandhi 



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