GST on Insulating Bare M.S. Pipes: Job Work with PU Foam & PE Film/HDPE Jackets

In re Perma Pipe India Private Limited (GST AAR Gujarat)

Introduction: The Authority for Advance Ruling (AAR) Gujarat examined the GST classification of insulating bare M.S. pipes using PU Foam and PE Film/HDPE jackets in the case of Perma Pipe India Private Limited. The ruling provides clarity on the applicable tax rate and classification under GST law.

Detailed Analysis

1. Background: Perma Pipe India Private Limited engages in the activity of adding insulation to bare M.S. pipes, converting them into pre-insulated M.S. pipes. The process involves the use of PU Foam and PE Film/HDPE jackets.

2. GST Classification: The applicant claimed that their activity amounts to manufacturing but falls outside the scope of Sr. No. 26 of notification No. 11/2017-CT (Rate), thus classifying under Sr. No. 27 at 18% GST. However, the AAR ruled that it falls under Sr. No. 26 for job work services at 12% GST.

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