TMI Blog2021 (2) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... said Schedule II prescribes that any treatment or process which is applied to another person s goods is a supply of services - In the instant case the applicant undertakes thermal spray / metal or metal alloy coating on the goods / material belonging to another person i.e. the principal. Therefore the work undertaken by the applicant amounts to job work and is a supply of services. Classification of the job work being provided by the applicant - HELD THAT:- It is an admitted fact that the job-work being provided by the applicant is nothing but metal coating of the goods belonging to other persons in different methods i.e. thermal spray, plasma spray, HVOF spray, Powder flame spray wore flame spray. The Explanatory Notes to the Sche ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) dated 28.06.2017 in case the owner of the goods (Principal) is registered under CGST and attract GST @ 12% and if the principal is unregistered the impugned job work gets covered under item (iv) of SL.No.26 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 and attracts GST @ 18%. - KAR ADRG 06/2021 - - - Dated:- 8-2-2021 - DR. RAVI PRASAD M.P. AND SRI. MASHHOOD UR REHMAN FAROOQUI, MEMBER Represented by: Sri M Raghavendra Maiya, C A Authorised Representative ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER SECTION 98(4) OF THE KGST ACT, 2017 1. M/s. Spraymet Surface Technologies (Pvt.) Ltd., # A-413, 9 th Main, II Stage, PIA, Bengaluru-560 058 (called as the Applicant hereinafter), having GSTIN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to classification of their service. Further the applicant has sought advance ruling in respect of the question on the issues covered under Section 97(2)(a) of the CGST Act 2017 and hence the application is admitted. 4. Applicant s interpretation of law : The Applicant submits their interpretation of law as under: 4.1 The applicant provides the services of thermal spray / metal coating, to their clients, on the material (various engineering items) received from the said clients. The nature of various types of coatings have been submitted in a separate broachure. 4.2 The applicant receives the material from the clients, do the process of thermal spray / metal coating and returns back the said material. Thus the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that they are into the business of different types of thermal spray or metal coating on materials supplied by the Principal using metal powders, carbide powders, wires rods for various engineering applications. They also offer coatings of pure metal alloys like ferrous and non ferrous, molybdenum and its alloys such as SS, NI, MO, Ai, Cu, Bronze, Babbit etc, nickel and cobalt base alloys, ceramic coatings, carbides and hard facing alloys. These processes include plasma spray, HVOF spray, powder flame spray, wire flame spray. 6.5 The applicant further submits that they receive the material from their client i.e. Principal with proper delivery challan and work order specifying the nature of the work to be performed on the material. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... work being provided by the applicant. It is an admitted fact that the job-work being provided by the applicant is nothing but metal coating of the goods belonging to other persons in different methods i.e. thermal spray, plasma spray, HVOF spray, Powder flame spray wore flame spray. The Explanatory Notes to the Scheme of Classification of Services specifies that SAC 9988 covers Manufacturing services on physical inputs owned by others and SAC 998873 covers Other fabricated metal product manufacturing and metal treatment services which includes metal treatment and coating services, general machining services, cutlery, hand tool and general hardware manufacturing services and other fabricated metal product manufacturing services not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The activity of the applicant is in the nature of job work covered under SAC 998873 and Notification No. 20/2019-Central Tax (Rate) dated 30.09.2019 is applicable to the applicant. The applicable rate of tax depends on the aspect whether the principal (owner of the goods on which job work is done) is registered under CGST/KGST Act 2017 or not. If Principal is registered the impugned job work attracts 12% GST in terms of item (id) of SL.No. 26 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 and if the principal is not registered the impugned job work attracts 18% GST item (iv) of SL.No.26 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 read with Circular No. 126/45/2019-GST dated 22.11.2019. - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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