Home GST GST Rate of 5% Applicable on Job Work For Processing Of “Barley” Into “Malted Barle

GST Rate of 5% Applicable on Job Work For Processing Of “Barley” Into “Malted Barle

0
GST Rate of 5% Applicable on Job Work For Processing Of “Barley” Into “Malted Barle

GST Price of 5% Relevant on Job Work For Processing Of “Barley” Into “Malted Barley”

The Central Board of Oblique Taxes and Customs (CBIC) has issued clarification that 5% GST is relevant on job work for processing of “barley” into “malted barley”.

The Board has supplied clarification concerning the GST Council’s suggestions on the GST levy made at its 52nd assembly on October 7, 2023, in New Delhi.

The query was whether or not job work for processing “Barley” into “Malted Barley” is topic to five% GST as it’s for “job work in relation to meals and meals merchandise” or 18% GST as it’s for “job work in relation to the manufacture of alcoholic liquor for human consumption.”

References have been obtained to make clear whether or not job work for the conversion of barley into malt attracts GST on the 5% prescribed price for “job work in relation to all meals and meals merchandise falling below Chapter 1 to 22 of the customs tariff” or on the 18% prescribed price for “job work in relation to the manufacture of alcoholic liquor for human consumption.”

Malt is a kind of meals. It may be ingested straight as a part of meal preparations or used as an ingredient in meals merchandise. It’s also utilised within the manufacturing of beer and alcoholic liquor for human consumption. No matter end-use, the conversion of barley into malt is taken into account work within the meals business.

The Board clarified that job work companies associated to malt manufacturing are coated by Sl. No. 26 (i) (f), which covers “job work in relation to all meals and meals merchandise falling below chapters 1 to 22 of the customs tariff” whatever the finish use of that malt and attracts 5% GST.

For Official Round Obtain PDF Given Under:

Be part of StudyCafe Membership. For Extra particulars about Membership Click on Be part of Membership Button

In case of any Doubt relating to Membership you possibly can mail us at [email protected]

LEAVE A REPLY

Please enter your comment!
Please enter your name here