In re M/s. CGR Gold Trading (GST AAR Kerala)
i) The tax liability of the applicant; the rate of tax for the services rendered by the applicant on quality testing and certification of gold ornaments.
The quality testing and certification of gold ornaments are covered under Service Classification Code, 998346 – Technical testing and analysis services. This service code includes; testing and analysis of the chemical and biological properties of materials such as air, water, waste (municipal and industrial), fuels, metal, soil, minerals, food and chemicals. The rate of GST applicable to 998346 is 18% as per SI No, 21 (ii) Other professional, technical and business services – of Notification No. 11/2017 Central Tax (Rate) dated 28.06,2017.
ii) The services on testing and appraisal of purification level of the gold ornaments that is – to certify the grade of gold smith works on the specimen given by gold workers.
The quality testing and certification of gold ornaments are covered under SAC 998346. The rate of GST applicable to 998346 is 18% as per Sl No. 21 (ii) Other professional, technical and business services- of Notification No, 11/2017 Central Tax (Rate) dated 28.06.2017.
iii) Gold maintenance / repair works such as enlargement of gold chains or other gold ornaments or cutting and polishing of gold ornaments or other repairs of gold ornaments.
The Jewellery Manufacturing Services includes gold maintenance / repair works, which falls under service Classification Code 998892. As per Section 2 (68) of the CGST Act, 2017; Job work is defined as undertaking any treatment or process by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly. The rate of GST applicable for manufacturing services on physical inputs (goods) owned by others is 5%; if undertaken on goods belonging to registered persons as per SI No.26 (i) (c) and 18% GST, if job work undertaken on goods belonging to unregistered persons as per SI No. 26 (iv) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017.
iv) Printing name of emblems or embossing / projecting top or side portion of ornaments.
