Case Law Details
In re Synthite Industries (GST AAR Andhra Pradesh)
The applicant has filed an application for seeking advance ruling on the process of job work i.e., importing the goods i.e., Green Tea/ black tea powders from his Principal from Germany and under taking process of “super critical fluid ” The material is being supplied by his Principal- foreign customer at free of cost and the processed output will be exported to them. The goods contains caffeine which is being removed by the applicant-job worker through extraction process. The de-caffeinated goods will be exported to the Principal as per their requirement and instructions.
Applicant sought for clarification on the following issues :-
♦ Whether the process of providing job work service to foreign customer as explained above is taxable under GST. Is such transaction attracts GST?
The process providing job work service to the foreign principal, in the premises of the applicant as per the specifications of the recipient of services, is taxable under APGST Act 2017/CGST Act 2017, as per Entry No.26 (HSN Code 9988) Proviso (iv), and liable to tax @ 18%.
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