Want to know full details about SAC 998892

Here’s a detailed response for your queries on SAC 998892 (Jewellery Manufacturing Services):

1. What is SAC 998892?

SAC 998892 corresponds to Jewellery Manufacturing Services under GST classification. It typically covers services related to manufacturing and processing of jewelry.

2. GST Rate for SAC 998892:

The GST rate on Jewellery Manufacturing Services (SAC 998892) is 18% (9% CGST + 9% SGST) as it falls under the category of services.

3. Applicability for Goldsmiths:

• Goldsmiths who provide services like making, designing, or manufacturing jewelry generally fall under SAC 998892.

• If the goldsmith is involved in manufacturing or processing services, this SAC is applicable.

• However, if the goldsmith is only selling jewelry, then GST on sale of goods applies (usually 3% on making charges plus applicable rates on gold).

4. Can a Goldsmith (not Jewellery Seller) opt for Composition Scheme?

• No, the Composition Scheme under GST is not applicable for service providers such as those under SAC 998892.

• The Composition Scheme is mainly available for suppliers of goods with turnover up to ₹1.5 crore (₹75 lakh in some states) and some specified service providers with limited scope.

• Since Jewellery Manufacturing is a service, the goldsmith providing such services cannot opt for Composition Scheme.

5. If a Goldsmith opts for Composition Scheme (selling jewelry):

• If the goldsmith sells jewelry as goods (not services) and turnover is within limits, they may opt for Composition Scheme.

• The rate applicable would be 1% on turnover of taxable supplies of goods.

• Note: Composition Scheme is not allowed for service providers except for a few notified service categories, and Jewellery Manufacturing is not included.