Job work service to foreign customer under gst: aar
18% GST applicable to Job Work Service to Foreign Customer: AAR
M/s Synthite Industries vs. AAR Andhra Pradesh
Case No. – AAR/13(GST)/2018 Date – 20.08.2018
Fact of the Case:
- M/s Synthite Industries is the applicant in the present case.
- It entered into a contract with foreign company as Job Worker for processing of tea. Raw material /packing material and all other things are supplied by the foreign company & after completion of processing work it will be exported to the principal.
- The applicant sought for a ruling on whether the process of providing job work service to foreign customer is taxable under GST.
- The authority referred to section 2(68) of CGST Act 2017 that Job Work means the treatment /process undertaken by a person on goods belonging to another registered person. The ownership of goods is not transferred to the job worker but it remains with the principal.
Decision of the Case:
The Bench held that the process of providing “Job Work” service to the foreign customer is taxable under the Andhra Pradesh GST Act @ 18%