Job work services undertaken by the applicant on the materials belonging to other registered persons are taxable at 12%.
In respect of dealers doing job work only, the liability differs in respect of such work done on the goods received from other registered dealers, taxable at 12% and if done for any unregistered persons taxable at 18%.
The dealers doing pure “job works” have to understand these basic provisions in the GST Acts.
In this regard a relevant AAR has been issued by the Karnataka GST.
The applicant M/s Alcoats, Mysuru is doing job work of anodizing, plating etc., on the materials sent by customers.
The Authority for Advance Rulings, Karnataka, Bengaluru in KAR ADRG 62/2021 dated 29-10-2021 has clearly discussed the issue and given finding as “job work services undertaken by the applicant on the materials belonging to other registered persons are taxable at 12%.
The relevant AAR is attached for information of all as under:
