GST on ‘coal rejects’ whose invoice is raised upon washery/job-worker

In re Punjab State Power Corporation Limited (GST AAR Punjab)

(i) Whether the ‘coal rejects’ whose invoice is raised by Applicant upon washery/job-worker, is taxable under GST Act and Compensation Cess Act in the hands of Applicant?

Yes, Coal rejects are to be classified under HSN 2701 and are taxable at 5% GST Rate Rs. 400 PMT Compensation Cess.

(ii) If the answer to above question is yes. whether applicant is eligible to avail Input Tax Credit

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