TMI Blog2021 (11) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... ls sent by their customers and returns the said material back to the respective customers. In this regard the applicant sought advance ruling on the issue that whether their activity is covered under clause (id) or clause (iv) of the entry number 26 of Notification No. 11/2017-Central Tax (Rate), as amended, and consequential rate of GST applicable to their activity. Applicability of circular No.126/45/2019-GST dated 22-11-2019 - HELD THAT:- It could be inferred from the circular that the job works defined under Section 2 (68) of the CGST Act i.e. job work services by way of treatment or processing undertaken by a person on goods belonging to another registered person are covered under clause (id) of entry number 26 of the Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vely). The Applicant is engaged in providing job work services by carrying out the processes such as anodizing, plating on the materials sent by its customers, on job work basis. 3. In view of the above, the applicant has sought advance ruling in respect of the following question: Applicable rate of GST for our activity when it is provided to registered person, as per Notification No.11/ 2017-Central Tax (Rate) dated 28-06-2017 as amended time to time and clarification Circular No.126/45/2019-GST dated 22-11-2019 serial number 26 of the said notification as amended time to time specifies tax rate for the heading 9988 (manufacturing services on physical inputs (goods) owned by others), Whether our activity falls under item number (id) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in their application. FINDINGS DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matters and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and the relevant facts along with the arguments made by the applican ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med that they provide job work services by carrying out the process such as anodizing, plating on the materials sent by its customers on job work basis, Applicable SAC code for their service is 998873. ii. Further, the applicant vide letter dated 13.08.2021 sought the Advance Ruling from the Advance Ruling Authority in Karnataka, as to whether, their activity falls under item number (id) which attracts 12% tax rate (CGST at 6%) or falls under item number (iv) which attracts 18% tax rate (CGST at 9%) vide Notification No.11/ 2017-Central Tax (Rate) dated 28-06-2017 as amended. iii. Section 2(68) of CGST Act, 2017, defines Job work means any treatment or processing undertaken by a person on goods belonging to another registered per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of treatment or processing undertaken by a person on goods belonging to another registered person. On the other hand, the entry at item (iv) specifically excludes the services covered by entry at item (id), and therefore, covers only such services which are carried out on physical inputs (goods) which are owned by persons other than those registered under the CGST Act ; and viii. From the facts furnished by the Applicant, it is seen that they are providing job work services only to the registered persons. ix. In view of the above, it is opined that w.e.f., 01-10-2019 the Applicant is liable to pay GST at the rate of 12% (6% CGST vide Sl.No.26(id) of Notification No.11/ 2017-C.T Rate + 6% SGST under the relevant notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... municated as under: there is clear demarcation between scope of the entries at item (id) and item (iv) under heading 9988 of Notification No.11/ 2017-Central Tax (Rate) dated 28-06-2017. Entry at item (id) covers only job work services as defined in Section 2 (68) of CGST Act, 2017, that is, services by way of treatment or processing undertaken by a person on goods belonging to another registered person. On the other hand, the entry at item (iv) specifically excludes the services covered by entry at item (id), and therefore, covers only such services which are carried out on physical inputs (goods) which are owned by persons other than those registered under the CGST Act . 14. It could be inferred from the foregoing circular (par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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