Classification of service— In the instant case, the applicant is a top player in the category Chocolate Manufacturers in the Rangareddy, Hyderabad. Established in the year 1987. 

It is known to provide top service in the following categories: Chocolate Manufacturers, Confectionery Manufacturers, Food Product Retailers, Sugar Coated Chocolate Manufacturers. They are “Job Work provider” doing job work of manufacturing chocolates (food product falling under Chapter 19 of customs tariff Act) with inputs provided by the “job work receiver”. Their service is coming under SAC Code 9988 with applicable tax rate of 5%.

QUESTIONS RAISED:

1. GST Tax rate on Service Accounting Code 998816.

The applicant is desirous of ascertaining rate of tax on job work services supplied by them and the SAC applicable to the same. 

Held that— GST Tax rate on Service Accounting Code 998816 is 2.5% CGST and 2.5% SGST.