GST Leviable by Job Worker - Engineering Industry, Goods and Services Tax - GST

[A SenthilKumaran]

Dear Sir,

We have outsourced the steel MS/SS raw material to cut through lazer cutting machines on various sizes based on the drawings to our job worker which is parts of our manufacturing final product by us. My query is in this case our job worker has to charge weather 12% GST or 18% GST. In this case the material sent by us and they are only providing the lazer cutting services.

Posts / Replies

[KASTURI SETHI]

The issue is debatable. Some experts are of the view that if the activity amounts to manufacture GST @18% is applicable otherwise GST is applicable @12%. In the absence of the definition of the term, 'manufacturing service' in CGST Act, the situation is fluid. The phrase, 'manufacturing service' should be defined.

I have already explained my views in detail in this forum in October, 2019.

[YAGAY andSUN]

What is the end use of MS/SS raw material at your end, which are duly being cut by the job worker through lazer cutting machine.

[YAGAY andSUN]

In our view, rate of GST should be 18% as it is being used in your finished/final products.