GST – Whether a Job worker is eligible to avail the benefit of Composition Scheme u/s 10? What happened where the nature of activity undertaken by the job worker is amounting to Manufacture? will he be denied the benefit of composition as service provider?
Rule – 005 – Conditions and restrictions for composition levy Central Goods and Services Tax Rules, 2017
GST
Act-Rules
Dated:- 19-7-2017
Section – 10 – Composition levy.
Schedule 2: – ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
Rule – 5 – Conditions and restrictions for composition levy
Central Goods and Services Tax Rules, 2017
As per the scheme of Composition under GST, a service provider is not eligi
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of the CGST Act, 2017 specifically states that, "Any treatment or process which is applied to another person's goods is a supply of services."
Contrary view
Some experts feels that a Job worker, whose activity is amounting to manufacture, will be eligible for the benefit of Composition scheme. But, it should not be forgotten that Job worker is a service provider and all the service provider (except one case) are specifically excluded from the scope of composition scheme u/s 10(2)(a).
Reply By PMR Gowrissankar
The Reply:
If a job worker has to add other consumables like welding rod, paint, bolt and nuts etc, will it not amount to conversion of material (manufacture) and eligible for composition scheme? Please clarify.
Rep
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