GST AAR: Shot Blasting at Customer Site Classified as Job Work Service
The applicant, M/s. Amruta Fettlers (SAYAJI BABURAO SOLASE) is engaged in shot blasting activity and has set up his own shot blasting machine at the property of the customer, M/s. GPI. The customer (GPI) charges the applicant money for space and electricity that are provided to the applicant for operating the machine. The applicant uses his own steel shots and labourers to do the mentioned work. He is paid on a per-piece basis. The output after processing is given to GPI, who further processes it and sells it on the payment of applicable GST. The applicant has always charged 18% GST for the mentioned activity. However, the applicant’s customer has pointed out that the applicant’s activity is considered a job work service, and it should be at 12% GST.