- The AAR, Gujarat ruled that job work services provided by Shree Avani Pharma are liable to pay GST at a rate of 12 percent.
- Shree Avani Pharma is a partnership firm that provides job work services of converting raw material into finished products for clients registered under GST.
- The ownership of the goods remains with the client during the job work.
- The AAR observed that job work is defined as any treatment or process undertaken by a person on goods belonging to another registered person.
- The AAR ruled that the job work provided by Shree Avani Pharma falls within the purview of Sr. No. 26(id) of the Notification No. 11/2017-CE (Rate) and Heading SAC 9988, and is therefore liable to pay GST at a rate of 12 percent.
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
