Page 139 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] IN RE : ELECTROPLATING AND METAL FINISHERS 649
Placing the job work services un-
der RCM will also result in block-
ing of ITC of the job worker and
increasing of the costs of the job
worker and the principal.
The rate reduction to 5% would
lead to demand of refund at the
hand of job-worker. Therefore
instead of reducing the rare on job
work services in the engineering
and automoble sector from 18% to
5% the same may be reduced to
12%.
The rate of GST on all job work
services, which are not currently
eligible for the 5% rate may be
reduced to 12%. However the rate
of GST applicable on Bus Body
Building shall remain at 18% as
inputs used for bus body building
are at higher rate of 28%/18%.
Revenue Implication of the pro-
posal in Rs. 1,100 Crores approxi-
metly. Thus amount shall shift as
liability from job-worker to the
principal and in therefore not a
loss of revenue.

Thus, the applicable rate of tax from 30-9-2019, is given vide Entry 26(id) of Noti-
fication No. 11/2017-C.T. (Rate) as amended by Notification No. 20/2019-C.T.
(Rate), dated 30-9-2019, which is @ 6% CGST in cases when the goods are owned
by another Registered person as in such cases the applicant supply engineering
services as job-work and the applicable rate of tax in cases when the goods are
owned by unregistered persons continues @ 9% CGST as per Sl. No. 26(iv) of No-
tification No. 11/2017-C.T. (Rate), dated 28-6-2017 as amended.
7.6 To sum up, the CGST rate applicable as per Notification No.
11/2017-C.T. (Rate), dated 28-6-2017 and the corresponding Rate of SGST as per
Notification No. II(2)/CTR/532(d-14)/2017 vide G.O. (Ms) No. 72, dated 29-6-
2017 as amended relevant to the proceedings at hand are tabulated as below for
ease of reference :

Sl. Effective Effective Description Rate Supplied to
No. from upto Registered
Person or
unregistered
26(ii) 1-7-2017 21-8-2017 Manufacturing 9% Registered and
Services on Phys- unregistered
ical inputs
(goods) owned by
others...

GST LAW TIMES  26th March 2020  235