Circular, 2019

Text

Reproduced from the document India Code holds for this instrument. The Gazette prints Hindi and English side by side and this is the English; the Department's own PDF remains the authority.

To

GOVERNMENT OF TRIPURA

OFFICE OF THE CHIEF COMMISSIONER OF STATE TAX

PANDIT NEHRU COMPLEX, GURKHABASTI

AGARTALA, TRIPURA WEST, PIN-799006.

t-L- Dated, Agartala, the 9.-C November, 2019.

Circular No. 44/2019- GST (State) The Additional Commissioner of State Tax I Deputy Commissioner of State Tax/ Superintendent of State Tax (All) I Inspector of State Tax (All) Subject: Clarification on scope of the notification entry at item (id), related to job work, under heading 9988 of Notification No. 1112017-Central Tax (Rate) dated 28-06-2017-reg. The Department of Revenue, Tax Research Unit vide Circular No. 126/45/20 19- GST dated 22"d November, 2019 has issued clarification on scope of the notification entry at item (id), related to job work, under heading 9988.,ofNotification No. I i/2017-Central Tax (Rate) dated 28-06-2017, in order to ensure unifonnity in the implementation of the provisions of law across the field formations, which is annexed herewith.

In exercise of powers conferred by section 168 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No.9 of 20 17) for the purpose of uniformity in the implementation of the Act it is instructed to follow the clarification issued vide Circular No. 126/45/20 19-GST dated 22"d November, 2019 by the Department of Revenue, Tax Research Unit. Enclo.: Circular No. 126/45/20 19-GST.

Copy to:

Chief Commissioner of State Tax Government ofTripura I. The P.S. to the Additional Chief Secretary, Finance, Government of Tripura for favour of kind information.

2. The Assistant Statistical Officer, Statistical Section, 0/o the Commissioner of Taxes & Excise, Agartala with request to upload the Circular in the Official website www.tri urataxes.nic.in .

3. Guard File.

(Nages Chief Commissioner of State Tax Government of Tripura I To, Government of India Ministry of Finance Department of Revenue Tax Research Unit Circular No. 126/45/20 19-GST North Block, New Delhi, Dated the 22"d November, 2019 The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) I The Principal Director Generals/ Director Generals (All) Subject- Clarification on sc~pe of the notification entry at item (id), related to job work, under heading 9988 of Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017-reg. I am directed to say that doubts have been raised with regard to scope of the notification entry at item (id) under heading 9988 of Notification No. 1112017-Central Tax (Rate) dated 28- 06-2017 inserted with effect from 01-10-2019 to implement the recommendation of the GST Council to reduce rate of GST on all job ~ork services, which earlier attracted 18 % rate, to 12%. It has been stated that the entry at item (id) under heading 9988 of Notification No. 111201 7 -Central Tax (Rate) dated 28-06-2017 inserted with effect from 01-1 0-2019, prescribes 12% GST rate for all services by way of job work. This makes the entry at item (iv) which covers "manufacturing services on physical inputs owned by others" with GST rate of 18%, redundant.

2. The matter has been examined. The entries at items (id) and (iv) under heading 9988 read as under:

(id) Services by way of job work other 6 - than (i), (ia), (ib) and (ic) above;

(iv) Manufacturing services on physical 9 - ' inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (id), (ii), (iia) and

(iii) above.

I Circular No. 126/45/20 19-0ST

3. Job work has been defined in COST Act as under.

"Job work means any treatment or processing undertaken by a person on goods belonging to another registered person and the expression 'job worker' shall be construed accordingly. "

4. In view of the above, it may be seen that there is a clear demarcation between scope of the entries at item (id) and item (iv) under heading 9988 of Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017. Entry at item (id) covers only job work services as defined in section 2

(68) of COST Act, 2017, that is, services by way of treatment or processing undertaken by a person on goods belonging to another registered person. On the other hand, the entry at item

(iv) specifically excludes the services covered by entry at item (id), and therefore, covers only such services which are carried out on physical inputs (goods) which are owned by persons other than those registered under the COST Act.

5. Difficulty if any, in the implementation of this Circular may be brought to the notice of the Board.

Yours Faithfully, (Shashikant Mehta)

OSD, TRU

Email: shashikant.mehta@gov.in Tel: 011 2309 5547