30 August 2019
Dear All We have oils refinery in West Bengal. we are selling our product (petroleum products) @ 18% GST. Now we procured a order from our customer for processing of some said product and they will give us the processing charges. We are desiccated to charged @ 18% GST on processing fees. Customer is saying they give us GST @ 5% on processing charges. What % GST we wiil charge on the said job, please let me clear.
30 August 2019
If product from customer belongs to the principal ( your customer ) , it will fall under category of Job work and the rate will be 18% . Refer following relevant case law with explanation :- https://taxguru.in/goods-and-service-tax/gst-processing-natural-gas-inputs-received-bpcl.html
CAclubindia
