TMI Blog2018 (11) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is located in the State of Andhra Pradesh. Hence the tax liability under SGST Act/CGST Act 2017 only applies. Exemption as per N/N. 25/2012 dated 20.06.2012 - Held that:- As the Service Tax Act itself subsumed under Goods & Services Tax Act 2017, the Notification referred to, is no more applicable. Ruling:- 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%. The place of supply for this transaction, is location of the service where actually performed i.e., business premises of the applicant, which is located i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported as more than ₹ 1500 Crores. 2. The applicant has filed an application in Form ARA-01, dated 29.05.2018, and paid the requisite fee of ₹ 10,000 (Ten thousand) ₹ 5000 towards SGST, and ₹ 5000 towards CGST vide CPIN No. 18053700006069, dated 03.05.2018, and its acknowledgement registration number is JRX346255. 3. 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 extraction. 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 cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The definition of 'Job work is as under: What is Job work? Section 2(68) of the CGST Act, 2017 defines job work as 'any treatment or process undertaken by a person on goods belonging to another registered person'. The one who does the said job would be termed as 'job worker'. The ownership of the goods does not transfer to the job worker but it rests with the principal. The job worker is required to carry out the process specified by the principal, on the goods. With regard to IGST liability, Sec. 13 of IGST Act, 2017 reads as under:- 13. (1) The provisions of this section shall apply to determine the place of supply of services where the location of the supplier of services or the location of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n agreement with the applicant-job worker on 20.07.2017 for undertaking the work of processing Tea i.e., super critical fluid extraction, the other way round called removing Caffeine from Tea, the raw material/packing material is supplied by the foreign Principal to the factory premises of the applicant-job worker, and after the process, the de-caffeinated tea will be exported to the Principal ( i.e., to Germany) as per the instructions entered at the time of agreement. Question No. 1 for clarification: Whether the process of providing job work service to foreign customer as explained above is faxable under GST. Is such transaction attracts GST? With regard to the process of providing job work service by the applicant to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of IGST Act 20 1 7 which reads as under:- 13. (1) The provisions of this section shall apply to determine the place of supply of services where the location of the supplier of services or the location of the recipient of services is outside India. (3) The place of supply of the following services shall be the location where the services are actually performed, namely:- (a) services supplied jn respect of goods which are required to be made physically available by the recipient of services to the supplier of services, or . Hence, the place of supply for this transaction is location of the service where actually performed i.e., business premises of the applicant which is located in the State of Andhra Prade ..... X X X X Extracts X X X X X X X X Extracts X X X X
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