9911796707
TMI Blog2021 (2) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 97 of the CGST Act, 2017 & KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in FORM GST ARA-01, discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The applicant submitted that they are into the business of different types of thermal spray or metal coating using metal powders, carbide powders, wires rods for various engineering applications. They also offer coatings of pure metal alloys which include plasma spray, HVOF spray, powder flame spray, wire flame spray. The stages involved in the said process are (i) receipt of the material from the client with proper Delivery Challan along with the PO/ Work Order with the required job specification. (ii) Performance of the required job on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CGST Act 2017. 4.3 The rate of GST applicable to their service is 12%, in terms of Notification No.29/2019-Central Tax (Rate) dated 30.09.2019, effective from 01.10.2019, as their service is in the nature of jobwork. PERSONAL HEARING: / PROCEEDINGS HELD ON 15.12.2020. 5. Sri. M Raghavendra Maiya, Chartered Accountant & duly authorised representative of the applicant appeared for personal hearing proceedings held on 15.12.2020 & reiterated the facts narrated in their application. 6. Discussion and Findings: 6.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri. Lokesh Reddy, C.A. and authorised representative of the applicant during the personal he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of their service. The applicant, after performing the job, returns back the material to the Principal with the service invoice. 6.6 They contend that they only do "job work" on the material supplied by their client i.e. Principal. The applicant further contends that they provide engineering services and hence the GST rate of 12% is applicable to them in terms of Notification No. 20/2019-Central Tax (Rate) dated 30.09.2019. The contentions of the applicant and the nature of their service have been examined and the same are discussed in the subsequent paras. 6.7 Section 2 (68) of CGST Act, 2017 defines job work as, "any treatment or process undertaken by a person on goods belonging to another registered person". Further Schedule II, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SAC 998873. 6.9 The Notification No. 20/2019-Cental Tax (Rate) dated 30.09.2019 specifies the rate for job work in relation to diamonds, bus body building and all other rest of the items. 6.10 Now we invite reference to the Circular No. 126/45/2019-GST dated 22.11.2019 wherein a clarification, on scope of the notification entry at item (id), related to job work, under heading 9988 of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, at para 4 has been issued, which stipulates that entry at item (iv) covers only such services which are carried out on physical inputs (goods) which are owned by persons other than those registered under the CGST. The applicant, in the instant case has not furnished required information so as to dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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