Karnataka GST Advance Ruling KAR.ADRG 31/2026: Application Withdrawn
The Authority for Advance Ruling in Karnataka closed the case regarding GST rates for steel job work because the company withdrew its request.
- Ruling
- KAR.ADRG 31/2026 dated 06.07.2026
- Dated
- 06 Jul 2026
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Arihant Metals asked about the GST rate for steel bar job work.
- The company requested to withdraw their application before a decision.
- The authority closed the case without deciding the tax rate.
- This order provides no guidance on GST rates for peeling or grinding.
In short
The company asked the Authority for Advance Ruling (AAR) to decide if their steel processing job work should be taxed at 12% or 18%. Before the authority could issue a decision, the company asked to withdraw their request.
What has changed
How it worked before
Businesses often seek clarity on whether specific industrial processes like peeling or grinding steel bars qualify for lower job work tax rates.
What has changed
Nothing changed. Because the application was withdrawn, the authority did not rule on the tax rate, meaning the legal position remains exactly as it was before the request.
Who this affects
Manufacturers and job workers in the steel industry who are unsure about the correct GST rate for their services.
An example
Imagine a steel processor in Karnataka who performs similar grinding work. They might hope this ruling would confirm a 12% rate. Because the applicant withdrew their request, this ruling offers no help, and the processor must still determine the correct rate based on current GST laws.
What you should do
Do not rely on this order for tax planning. Since the authority did not provide a decision, you must continue to follow your existing tax classification and consult with your tax advisor to ensure your GST rate is correct.
If you do nothing
If you assume this order sets a precedent, you risk applying the wrong tax rate. A tax officer may disagree with your classification, leading to demands for unpaid tax, interest, and penalties.
The terms explained
- Advance Ruling
- A formal decision from tax authorities on how GST laws apply to a specific business transaction.
- Job Work
- Any treatment or process undertaken by a person on goods belonging to another registered person.
- SAC Code
- Services Accounting Code used to classify services for GST purposes.
The ruling in detail
Authority for Advance Ruling
M/s Arihant Metals & Extruded Pvt. Ltd.
KAR.ADRG 31/2026 dated 06.07.2026 · Karnataka
Questions before the authority
- Whether the GST rate for job work SAC Code 998898 is 12% or 18% for the job work process of peeling, polishing and grinding of steel bars/rods.
Facts
The applicant is a manufacturer of bright steel, peeled and ground bars who also performs job work. They sought an advance ruling to clarify the applicable GST rate for the job work process of peeling, polishing, and grinding of steel bars and rods.
Ruling
| Question | What the authority ruled |
|---|---|
| GST rate for job work SAC 998898 | Not decided Application withdrawn by the applicant |
The authority did not provide a ruling on the merits of the question. The application was disposed of as withdrawn at the request of the applicant.
Reasoning
The applicant submitted a letter dated 10.06.2026 requesting the withdrawal of their application. They stated that the issue raised no longer survives for consideration and they no longer wish to pursue the adjudication. Consequently, the authority allowed the withdrawal and disposed of the matter without addressing the substantive legal question.
Provisions relied on
- Section 97 of the CGST Act, 2017
- Section 98(2) of the CGST Act, 2017
- Section 98(2) of the KGST Act, 2017
- Rule 104 of the Central Goods and Services Tax Rules, 2017
For the practitioner
This order provides no guidance on the classification or tax rate for the specified job work services. It serves only as a procedural record of the **withdrawal of the application** by the taxpayer. Practitioners should note that this ruling does not establish a precedent for the taxability of the mentioned processes.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/4-arihanth_metals.pdf
Legibility of the scan, as read: high.
Prepared 10-09-2026.
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