GST Classification: Tanning with Chemical Consumption - Composite Supply or Job-Work? Chapter 41 Clarification and Tax Implications.

Classification of supply - Composite supply or not - Job-Work or not - activity of tanning, with chemical consumption - treatment or processing undertaken on goods owned by other person - If the activity of the Applicant is a service by way of treatment or processing undertaken by a person on goods belonging to another registered person, it is rightly classifiable as processing of hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975 - Taxable @5% - Otherwise taxable @ 18% of GST - AAR .....

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