Case Law Details
In re ALCOATS (GST AAR Karnataka)
Job work services such as anodizing, plating, on goods/materials belonging to registered persons attracts 12% GST
In M/s Alcoats [KAR ADRG 62/2021 dated October 29, 2021] Karnataka Authority for Advance Ruling (KAAR) held that job work services undertaken by M/s Alcoats (the Applicant) by way of treatment or processing such as anodizing, plating, on the goods/materials belonging to registered person are covered under clause (id) of entry number 26 of the Notification 11/2017-Central Tax (Rate) dated June 28, 2017 as amended by Notification 20/2019-Central Tax (Rate) dated September 30, 2019 (Service Rate Notification) and accordingly attracts GST rate of 12%.
The Applicant has sought an advance ruling that as per entry number 26 of Service Rate Notification whether job work services of anodizing, plating on the materials sent by their customers i.e. registered persons, falls under item number (id) which attracts 12% tax rate or whether it falls under item number (iv) which attracts 18% tax rate.
The Hon’ble KAAR observed, that Central Board of Indirect Taxes and Customs (“CBIC”) has issued a clarification vide para 4 of Circular No. 126/45/2019-GST dated November 22, 2019 by making a clear demarcation between scope of the entries at item (id) and item (iv) of serial number 26 of Service Rate Notification.
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