Karnataka AAR: 12% GST Rate for Job Work of Metal Alloy Coating or Thermal Spray

The Karnataka Authority of Advance Ruling (AAR) held that 12% GST is appropriate for Job work of Thermal spray/metal or metal alloy coating on goods pertaining to different persons if the principal is enrolled.

The petitioner is the owner of the Sprayment surface technologies Pvt ltd. and makes various classes of thermal spray or metal coating by using metal powders, carbide powders, wire rods for various engineering applications. Indeed they provide coatings of pure metal alloys which include plasma spray, HVOF spray, powder flame spray, wire flame spray.

The steps engaged in the procedure of the receipt of the material from the client within the proper delivery challan Get to know about delivery challan format under GST. Also, we mentioned when delivery challan in GST can be issued for the transportation of goods without a tax invoice. Read More and within the PO or work order within the needed job features, the performance of the needed job on the material obtained from the customer, and dispatch of the material again to the customer.

The petitioner seeks the advance ruling relevant to the question that if the process of the petitioner is for the job work as stated beneath section 2 (68) of CGST Act, 2017 and whether Notification No.20/2019-Central Tax (Rate) dated 30.09.2019 is relevant on them.

The two judges Dr. M.P.Ravi Prasad and Mashood Ur Rehman Farooqui held that the job work engaged through the petitioner is comes beneath item (id) of SL.No.26 of Notification No. 11/2017- Central Tax (Rate) dated June 28, 2017, if the owner of the goods is enrolled beneath CGST and imposed with 12% GST and if the same is not being enrolled the impugned job work will cover beneath item (iv) of SL.No.26 of Notification No. 11/2017- Central Tax (Rate) dated June 28, 2017, and attracts 18% GST.