Gst on processing charges

This query is : Resolved

Chandan Mukherjee (Querist)
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30 August 2019 Dear All
We have oils refinery in West Bengal. we are selling our product (petroleum products) @ 18% GST. Now we procured a order from our customer for processing of some said product and they will give us the processing charges. We are desiccated to charged @ 18% GST on processing fees. Customer is saying they give us GST @ 5% on processing charges.
What % GST we wiil charge on the said job, please let me clear.

Thanks & Regards

Chandan Mukherjee

CA Anita Bhadra

CA Anita Bhadra (Expert)
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30 August 2019 If product from customer belongs to the principal ( your customer ) , it will fall under category of Job work and the rate will be 18% .
Refer following relevant case law with explanation :-
https://taxguru.in/goods-and-service-tax/gst-processing-natural-gas-inputs-received-bpcl.html