2018 (11) TMI 403 – AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – 2018 (19) G. S. T. L. 142 (A. A. R. – GST) – Levy of GST – job work service to foreign customer – IGST or SGST+CGST? – Applicability of exemption under N/N. 25/2012 dated 20.06.2012 – Held that:- the process of providing job work service to the foreign customer, in the premises of the applicant as per the specifications of the recipient of services is taxable under APGST Act 2017, as per Entry No.26 (HSN Code 9988) Proviso (iv), and liable to tax @ 18%.
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Applicability of IGST or SGST+CGST? – Held that:- The place of supply for this transaction is location of the service where actually performed i.e., business premises of the applicant which is located in the State of Andhra Pradesh. Hence the tax liability under SGST Act/CGST Act 2017 only applies.
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Exemption as per N/N. 25/2012 dated 20.06.2012 – Held that:- As the Service Tax Act itself subsumed under Goods & Services Tax Act 2017, the Notification referred
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he Jurisdictional Officer: Received Remarks Note: Under Section 100 of the APGST Act 2017, an appeal against this ruling lies before the appellate authority for advance ruling constituted under section 99 of APGST Act 2017, within a period of 30 days from the date of service of this order. M/s. SYNTHITE INDUSTRIES LIMITED, GST: 37AADCS5616E1ZG, Survey No. 42/4B 542/1, Tammavam, Medarametla, Bodduvanipalem Mandal Prakasam District, Andhra Pradesh 523212, Andhra Pradesh, India(hereinafter also referred as applicant-job worker), having GSTIN: 37AADCS5616E1ZG, are engaged in Job work of removing Caffeine from Tea powder imported from foreign Company viz., HTH Hamburger Teehandel GmbH Im. & Export, Hamburg, Germany, (herein after called Principal) and exporting the de-caffeinated tea to his Principal. Apart, the applicant-job worker is also engaged in the manufacture, export of Spice Oils and Oleoresins from India. Their annual turnover is reported as more than ₹ 1500 Crores. 2. T
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vice to foreign customer as explained above is taxable under GST. Is such transaction attracts GST? If applicable to GST, whether they have to pay IGST or SGST+CGST?. Is the job work service provided by them is exempted from service fax under Mega exemption list as per Notification No. 25/2012 dated 20.06.20 72 and not chargeable to GST? 5. This application is forwarded to the jurisdictional officer i.e Superintendent, Central Board of Excise & Customs, Ongole Range, apart from marking a copy to the Assistant Commissioner (ST), Ongole, to offer their remarks, whether any proceedings are pending or passed by any authority. The Assistant Commissioner (ST), Ongole, in his remarks not clearly mentioned in remarks whether there are any pending or passed proceedings before any authority. Similarly, no remarks have been offered by Superintendent, Central Board of Excise & Customs, Ongole Range, Ongole, so far. 6. However, in response to a hearing notice issued to the applicant-job wor
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-sections (3) to (13) shall be the location of the recipient of services: Provided that where the location of the recipient of services is not available in the ordinary course of business, the place of supply shall be the location of the supplier of services. (3) The place of supply of the following services shall be the location where the services are actually performed, namely:- (a) services supplied in respect of goods which are required to be made physically available by the recipient of services to the supplier of services, 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 repair
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process of providing job work service by the applicant to the foreign principal, shall be classified under the HSN Code services Heading 9988, which reads as under: 9983 – Manufacturing services on physical inputs owned by others The services included under Heading 9988 are performed on physical inputs owned by units other than the units providing the service. As such, they are characterized as outsourced portions of a manufacturing process or a complete outsourced manufacturing process. Since this Heading covers manufacturing services, the output is not owned by the unit providing this service. Therefore, the value of the services in this Heading is based on the service fee paid not the value of the goods manufactured. Further, the process of providing job work service to the foreign customer, in the premises of the applicant as per the specifications of the recipient of services is taxable under APGST Act 2017, as per Entry No.26 (HSN Code 9988) Proviso (iv), and liable to tax @ 18%.
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recipient of services to the supplier of services, or ………. Hence, the place of supply for this transaction is location of the service where actually performed i.e., business premises of the applicant which is located in the State of Andhra Pradesh. Hence the tax liability under SGST Act/CGST Act 2017 only applies. Question No.3 for clarification: Is the job work service provided by them is exempted from service tax under Mega exemption list as per Notification No. 25/2012 dated 20.06.2012 and not chargeable to GST? As the Service Tax Act itself subsumed under Goods & Services Tax Act 2017, the Notification referred to, is no more applicable. In the light of the above facts and legal provisions, the ruling is given as under:- RULING 1. The process providing job work service to the foreign principal, in the premises of the applicant as per the specifications of the recipient of services, is taxable under APGST Act 2017/CGST Act 2017, as per Entry No.26 (HSN Code
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