The Maharashtra Authority of Advance Ruling (AAR) has ruled that coating activities on goods belonging to customers qualify as job work and attract 12% GST.

The issue raised was whether the service of coating carried out by the applicant qualifies as job work in view of section 2(68) of the CGST Act, 2017.

Job work is a process undertaken by a job worker on goods belonging to a principal. Job work may or may not amount to manufacturing. Job work has been defined under section 2(68) of the CGST Act, 2017 to mean any treatment or process undertaken by a person on goods belonging to another registered person.