In re Shree Avani Pharma (GST AAR Gujrat)
The case of Shree Avani Pharma, as addressed by the Gujarat Authority for Advance Ruling (AAR), offers a nuanced perspective on the Goods and Services Tax (GST) implications of job work involving the conversion of raw materials owned by other registered dealers. The analysis unfolds various dimensions, shedding light on legal provisions, process intricacies, and the classification of services.
Background of the Applicant:
- Shree Avani Pharma is a registered partnership firm engaged in the job work of converting raw materials owned by other registered dealers.
- The raw materials include Nitroantraquinone (HSN 2909), Monon methyl Amine (HSN 2921), and Bromine (HSN 2801), which are converted into Antraquinone derivatives (HSN 2914) through a specific process.
Process Description:
- The process involves mixing dry/powdered raw materials with water, heating at high temperatures, adding liquid Bromine, centrifugation, distillation, filtration, chilling, and separation by centrifugation to obtain the final product in dry/powder form.
Applicant’s Belief and Query:
- The applicant believes that their job work service falls under SAC 9988.
- They seek clarification on whether their service falls within entry Sr. No. 26(id) of Notification No. 11/2017-CT (Rate) dated 28.6.2017, as amended vide Notification No. 20/2017-CT (Rate) dated 30.9.2019.
- The applicant questions whether their service, classified under SAC 9988, attracts GST at the rate of 12% (CGST 6% + SGST 6%) or otherwise.
Discussion and Findings:
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