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TMI Blog2022 (11) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. The application is therefore, admitted. 4. BRIEF FACTS OF THE CASE: 4.1 Statement of relevant facts as per the applicant having a bearing on the question(s) on which Advance Ruling is required is reproduced below:- The applicant is following the 4 digit code and as per the notification 78/2020, they are required to mention 6-digit SAC on their service invoices w.e.f. 01-04-2021. Accordingly, the SAC code applicable for them is 998816. But they could not find separate tax rate for this 6-digit code in the service code classification. When the requirement of 6-digit code is given, the tax rates also should have been released simultaneously to this effect. 4.2 Company Background: M/s Gandour India Food Processing Pvt Ltd in Cherlapalli, Rangaredd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or to a person acting on behalf of the supplier of services in order to provide the services: Provided that when such services are provided from a remote location by way of electronic means, the place of supply shall be the location where goods are situated at the time of supply of services: Provided further that nothing contained in this clause shall apply in the case of services supplied in respect of goods which are temporarily imported into India for repairs and are exported after repairs without being put to any other use in India, than that which is required for such repairs; (b) services supplied to an individual 7. APPLICANT'S INTERPRETATION OF THE LAW As per rate notification 31/2017, dt. 13-10-2017, serial number 26, Heading 9988 clause (f) "all food and food products falling under Chapter 1 to 22 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975)". Their products falling under chapter 19 of the Customs Tariff Act and accordingly tax was paid at 5%. The Notification 78/2020, dt. 15-10-2020, registered dealer with turnover more than 5 Crores to mention 6 digit code from 01-04-2021. Accordingly, their product falls under 998816 but there is no whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarification on the tax rate applicable to this effect. 9. DISCUSSION & FINDINGS: The applicant is desirous of ascertaining rate of tax on job work services supplied by them and the SAC applicable to the same. The applicants are undertaking the work of Chocolate Manufacturers, Confectionery Manufacturers, Food Product Retailers, Sugar Coated Chocolate Manufacturers. They are "Job Work provider" doing job work of manufacturing chocolates (food product falling under Chapter 19 of customs tariff Act) with inputs provided by the "job work receiver". The final product is also owned by the applicants' supplier. In this connection is pertinent to know the whether the applicant falls under supply of services or not? Para 3 of the Schedule II of the CGST Act, specifies certain activities to be treated as supply of goods or supply of services, in accordance to which "Any treatment or process which is applied to another person's goods is a supply of services". Therefore, the supply of the applicant is that of 'supply of Service'. Having decided that the supply is one of service the relevant Service code is ascertained as under. SAC 9988 as per the Explanatory notes is giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eans staple fibres and filaments of organic polymers produced by manufacturing processes either,- (a) by polymerisation of organic monomers to produce polymers such as polyamides, polyesters, polyolefins or polyurethanes, or by chemical modification of polymers produced by this process [for example, poly(vinyl alcohol) prepared by the hydrolysis of poly(vinyl acetate)]; or (b) by dissolution or chemical treatment of natural organic polymers (for example, cellulose) to produce polymers such as cuprammonium rayon (cupro) or viscose rayon, or by chemical modification of natural organic polymers (for example, cellulose, casein and other proteins, or alginic acid), to produce polymers such as cellulose acetate or alginates. 2.5 - (ii) Manufacturing services on physical inputs (goods) owned by others, other than (i) above. 9 - The above Notification is amended vide 20/2017-C.T (Rate), dated 22.08.2017 as under: (vi) against serial number 26:- (a) in column (3), in item (i),- (A) for sub-item (b), the following sub-item shall be substituted, namely:- "(b) Textiles and textile products falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975 (5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any treatment or process on goods belonging to another person, in relation to printing of all goods falling under Chapter 48 or 49, which attract TGST @ 6per cent. 6 -"; (vii) in item (iii), for the word, brackets and figures "and (ii)" the figures, brackets, letters and word ", (ia), (ii) and (iia)" shall be substituted; After consolidating the above notifications, the Entry 9988 is as under: Sl.No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition (1) (2) (3) (4) (5) 26 Heading 9988 (Manufacturing services on physical inputs (goods) owned by others) (i) Services by way of job work in relation to- (a) Printing of newspapers; (b) Textiles and textile products falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); (c) all products, other than diamonds, falling under Chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); (d) Printing of books (including Braille books), journals and periodicals; (da) printing of all goods falling under Chapter 48 or 49, which attract TGST @ 2.5per cent. or Nil; (e) [xxx] (ea) [xxx] (f) all food and food products falling u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its of HSN Code, as specified in the corresponding entry in column (3) of the said Table in a tax invoice issued by him under the said rules in respect of supplies made to unregistered persons. Further as in the Annexure - Scheme of Classification of Services this SAC code S.No. 498 Heading is given as under : S.No. Chapter, Section, Heading or Group Service Code (Tariff) Service Description (1) (2) (3) (4) 498 Heading 9988 Manufacturing services on physical inputs (goods) owned by others 499 Group 99881 Food, beverage and tobacco manufacturing services 500 998811 Meat processing services 501 998812 Fish processing services 502 998813 Fruit and vegetables processing services 503 998814 Vegetable and animal oil and fat manufacturing services 504 998815 Dairy product manufacturing services 505 998816 Other food product manufacturing services A combined reading of the above notifications, explanation and SAC Services, the SAC of the Service Offered by applicant is "998816" i.e., "Other food product manufacturing services" and the rate of tax as seen from the above entry is 2.5 % CGST and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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