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TMI Blog2025 (3) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... d 28th Jun, 2017 which was included vide Notification No. 31/2017-CT (Rate) dated 13th Oct, 2013, as "Services by way of job work in relation to -(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)" chargeable @ 2.5.% each of CGST and SGST. Therefore, the fish processing services are taxable at the rate of 5% with effect from 13th Oct, 2017 under Chapter heading 9988. Prior to its amendment, the activity was covered under the Chapter heading 998812 as (ii) Manufacturing services on physical inputs (goods) owned by others, other than (i) above and attracted GST @ 18%.
Conclusion - If the applicant does the fish processing service on the goods owned by other registered person, it will fall within the scope of job work' and hence will be charged at the rate of 5%, provided all the procedures and provisions contained in the acts and rules are followed and adhered to by both the principal and by the applicant (job worker). X X X X Extracts X X X X X X X X Extracts X X X X ..... elled. * The product is then stored in cold storage at minus 18 degree centigrade. * The packed products are then supplied back to the service receiver in reefer containers at minus 18 degree centigrade or less. * The applicant is of the opinion that the fish processing falls within the entry 998812 chargeable at 5% (CGST-2.5% and SGST-2.5%). * The applicant claimed that there is specific entry in Notification No. 11/2017-CT(Rate) amended upto date from time to time read with the annexed scheme of classification of services referred to into explanation 4(ii) to the notification. * The applicant is carrying out processing of fish as stated above. During processing fresh fish/prawns are cleaned, cut, and frozen to become frozen fish/prawn. Frozen fish/prawns is a different commodity than fresh fish/prawn as the frozen fish/prawn is ready to cook and their shelf-life is much higher than the fresh fish/prawns. * Fresh fish is taxed at Nil rate, whereas the frozen fish is taxed at 5%. 4. Comments offered by JC, Madurai CGST Commissionerate Joint Commissioner vide letter dated 04-01-2024 has submitted that no proceedings are pending in respect of M/s. Jude Foods Private Lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s within the HSN entry 998812 and is chargeable at the rate of 5% (CGST-2.5% and SGST-2.5%). 7.3 Further the applicant stated that during processing, fresh fish/prawns are cleaned, cut, and frozen to become frozen fish/prawn. Frozen fish/prawns is a different commodity than the fresh fish/prawn as the frozen fish/prawn is ready to cook and their shelf-life is much higher than the fresh fish/prawns. Hence claimed that Fresh fish is taxed at Nil rate, whereas the frozen fish is taxed at 5%. 7.4. The following need to be analysed for deciding the classification and rate of GST on the activity done by the applicant. (i) What is the nature of activity being done by the applicant? (ii) Query in the present Advance ruling is "What is the classification and tax rate of FISH PROCESSING?' (iii) Whether the classification opined by the applicant is correct or not? (iv) Whether the notification claimed by the applicant is eligible to them? (v) If the classification adopted by the applicant is correct, whether it would fall under the purview of job work? (vi) If the services of the applicant is treated as job work', whether all the procedures contained in the Sections and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long to another registered person. * The term treatment or process is not defined under the GST Act 2017. However, it can be defined as "to subject a goods to a particular method or technique of preparation, handling, or other treatment, designed to affect a particular result". Or, process means, 'prepared, handled, treated or produced by a special technique or method'. 10. In the instant case, the activity of the applicant falls within the scope of job work, and the 'Principal" who is supplying the goods has to be a registered person. The registered person on whose goods job work is performed is called the "Principal" for the purpose of Section 143 of the CGST Act, 2017. Here the person who is sending raw fish in ice to the applicant is the principal and the applicant who performs any treatment or processes shall be the job-worker. 11. The activity of 'fish processing' is classified under Chapter heading 998812 (manufacturing services on physical inputs (goods) owned by others vide notification No. 11/2017-CT.(Rate) dated 28th Jun, 2017 which was included vide Notification No. 31/2017-CT (Rate) dated 13th Oct, 2013, as "Services by way of job work in relati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxpayer did not reverse the common credit availed for exempted, Zero-rated supplies and taxable supplies for financial year 2019-20 as per Section 17(2) of the Act read with Rule 42 of the Rules. (iii) The taxpayer belatedly filed the GSTR-9 Annual Returns for 2019-20 and not paid the late fees of Rs.20,000/- 15. From para 13 & 14, it could be seen that the demand and subsequent liability reflecting in the GST portal does not have any bearing on the clarification sought by the applicant in their Advance Ruling application. Hence, the members have no hesitation in answering the clarification sought by the applicant. 16. Accordingly, it is concluded that if the applicant does the fish processing service on the goods owned by other registered person, it will fall within the scope of job work' and hence will be charged at the rate of 5%, provided all the procedures and provisions contained in the acts and rules are followed and adhered to by both the principal and by the applicant (job worker). 17. Based on the above discussion, we rule as under. RULING Based on the facts, records and evidences submitted along with the application, the activity of 'fish processing' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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