In re ENP Techno Engineers (GST AAR Gujarat)
In view of the clarification given by the Board vide Circular No.126/45/2019 issued on 22.11.2019 as well as in light of the discussions made in the earlier paras, we conclude that the services of Electroplating surface coating and Electroless nickel plating provided by the applicant are classifiable under Heading 9988 (Manufacturing services on physical inputs(goods) owned by others) which appears at item(iv) of Entry No.26 of Notification No.11/2017-Central Tax(Rate) dated 28.06.2017 (as amended). The GST liability on the above would be 18% (9% SGST + 9% CGST) upto 21.11.2019. However, in view of clarification issued by the Board vide Circular No.126/45/2019 dated 22.11.2019, the GST liability for the applicant for the period from 22.11.2019 onwards would be as follows:
| Sr.No. | Service | Input provided by registered person/ unregistered person |
GST rate applicable |
|---|---|---|---|
| 1. | Electroplating surface coating and Electroless Nickel Plating service. | Registered person | 12% |
| 2. | Electroplating surface coating and Electroless Nickel Plating service. | Unregistered person | 18% |
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
The applicant M/s. ENP Techno Engineers located at Shed No.25, GVMM Estate, Behind Kaiwal Weigh Bridge, Odhav, Ahmedabad-382415 are involved in providing Electroplating surface coating and Electroless Nickel Plating services. The applicant has stated that their firm receives the goods(materials) from the party and does process on the materials received and then returns the same goods to the concerned party with their coating on the parts and in such process neither a new product is generated nor is the product with new distinct name being generated i.e. it only enhances the durability of the material to some extent.
2. The applicant has stated that as on 30.09.2019, CBIC has issued notification No.20/2019-CGST which has amended the rate of GST for the job work prescribed in Notification No.11/2017-CGST; that in the said notification, point (i)(d)contains that the rate of job work where the process does not amount to any manufacture will attract rate of SGST and CGST of 6% each. The extract of Notification No.11/2017-CGST Rate and Notification No.20/2019-CGST rate are re-produced hereunder:
