In re Miura Infrastructure Pvt. Ltd. (GST AAR Chhattisgarh)
Whether the activity of steel fabrication by using consumable items, paints welding electtoders etc. by the applicant is covered under job work or not
(i) The activity of fabrication of structural steel/ technological structures undertaken by the applicant is ‘Supply of service’, classifiable under Heading ‘9988- Manufacturing services on Physical Inputs owned by others’.
(ii) (a) For the period up to 30.9.2019, the applicable rate of tax in respect of above supply of services (in this case to M/s Rungta Mines Limited) was 18% ( CGST + CGGST), as was stipulated under SI. No. 26(iv) of Notification No.11/2017-Central Tax (Rate) Dated-28/06/2017, irrespective of whether the goods were owned by registered or unregistered person.
(b)For the period with effect from 01.10.2019, the applicable rate of lax in respect of above supply is as under:-
(i) 12% (CGST + CGGST) in respect of job work services on goods owned by another Registered person (in this case M/s Rungta Mines Limited), as stipulated under entry Sl.No. 26(id) of Notification No.11/2017-Central Tax (Rate) Dated-28/06/2017 as amended and as clarified vide CBEC circular 126/45/2019-GST dated 22.11.2019.
(ii) 18% (CGST + CGGST) in respect of job work services on goods owned by / belonging to another unregistered person, as stipulated under entry SI.No. 26(iv) of Notification No.11/2017-Central Tax (Rate) Dated-28/06/2017 as amended.
(iii) As minor physical items like paints, electrodes, consumables etc. are arranged by the “applicant fabricator” and after being used are transferred to the “customer” in addition to the raw materials received from the principal then although there is no change in the rate of tax under GST Law on such supply of services provided as detailed above, the value of such items procured by the applicant is includible in the transaction/ taxable value for paying the applicable
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, CHHATTISGARH
Subject :- Chhattisgarh GST Act, 2017 – Advance Ruling U/s 98 Chhattisgarh GST Act, 2017 –
Advance Ruling U/s 98 sought by M/s Miura Infrastructure Pvt. Ltd., Bhilai, Durg, Chhattisgarh (GSTIN-22AACCB6411F1ZC) on whether the activity of steel fabrication by using consumable items like paints, welding electrodes etc., by the applicant would be covered under job work or not; its coverage under the HSN code 9988: its coverage the under sl. No. 26(id) of Notification No. 20/2019 Central Tax (Rate) doted-30.09.2019 and the applicable GST rate on the above activity.
Read :- Application dated 10/07/2020 from M/s Miura Infrastructure Pvt. Ltd., Bhilai, Durg, Chhattisgarh (GSTIN-22AACCB6411F1ZC)
PROCEEDINGS
[U/s 98 of the Chhattisgarh Goods & Services Tax Act, 2017 (herein- after referred to as CGGST Act, 2017)]
