Rate of tax for powder coating services, Goods and Services Tax - GST

[Kadirvelan Subbiah]

Sir,

As I am having a powder coating unit, having GST number, doing job work for my customers @ 18 % GST applicable, I came to know that, rate of tax comes down to 12 %. But, my question is, I am purchasing raw material like powder coating powders @ 18%, chemical @ 5%, using electricity, involving labourers, how can this be a pure job work & is rate of tax applicable for us, 12 %?

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

If you do the job work for registered persons (under CGST Act) the rate of tax is 12% (6% CGST & 6% SGST). For other persons it is 18% (9% CGST & 9% SGST). If the supply of service is inter state then the rate of tax is 12% IGST and 18% IGST.