GST Rate for Hot Dip Galvanising Services as Job Work
The Authority for Advance Ruling confirmed that hot dip galvanising on customer goods is job work, now taxable at 18%.
- Ruling
- Advance Ruling No. 43/ARA/2025, dated 27.10.2025
- Dated
- 27 Oct 2025
- 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
- Galvanising customer-owned steel structures qualifies as job work under GST.
- The applicable GST rate for these services is now 18%.
- This rate increase became effective on September 22, 2025.
In short
The company asked the Authority for Advance Ruling (AAR) whether their hot dip galvanising process counts as job work and what GST rate applies. The authority confirmed it is job work and clarified that the tax rate is 18% following a recent government notification.
What has changed
How it worked before
Businesses were often uncertain whether specific industrial treatments like galvanising qualified as job work or standard service provision, leading to inconsistent tax application.
What has changed
The ruling confirms that processing goods owned by another registered person is job work. It also highlights that the GST rate for these services was increased to 18% starting September 22, 2025, replacing the previous 12% rate.
Who this affects
Businesses that perform industrial processing, chemical treatment, or galvanising on goods owned by their customers.
An example
A metal fabrication shop receives steel beams from a client to apply a protective coating. They wonder if this is job work and what rate to charge. Based on this ruling, they should classify the service as job work and apply the 18% GST rate to their invoice.
What you should do
This ruling only applies to the company that asked for it. If you perform similar services, you should review your tax classification and ensure you are charging the correct 18% rate, but you cannot rely on this specific order as a legal defense for your own business.
If you do nothing
If you assume this ruling protects you and apply the wrong tax rate, your local tax officer may issue a notice for short-payment of tax. You would then be liable for the unpaid tax plus interest and potential penalties for incorrect filing.
The terms explained
- Job work
- Any treatment or process undertaken by a person on goods belonging to another registered person.
- Authority for Advance Ruling
- A government body that provides official decisions on how tax laws apply to a specific business's situation.
- Registered person
- A business that has obtained a GST identification number and is registered under the GST law.
The ruling in detail
Authority for Advance Ruling
M/s. GALCONS INDIA
Advance Ruling No. 43/ARA/2025, dated 27.10.2025 · Tamil Nadu
Questions before the authority
- Whether the activities carried out by the applicant qualifies for job work in view of section 2(68) of the CGST Act, 2017?
- If YES, whether GST rate of 12% or 18% would be applicable in view of Sr. No.26 (id) and (iv) of the Notification No. 11/2017 CT- Rate dated 28th June 2017 as amended vide Notification No. 20/2019 CT-Rate dated 30th September 2019?
- If No, what would be classification of services and rate of tax thereof?
Facts
The applicant is engaged in providing Hot Dip Galvanising services on goods owned by their customers. They receive steel structures from contractors, perform chemical treatments and galvanising, and return the processed goods to the customers. The applicant sought a ruling on whether these activities constitute job work and the applicable GST rate.
Ruling
| Question | What the authority ruled |
|---|---|
| Qualification as job work | Yes, qualifies as job work Under Section 2(68) of the CGST Act, 2017 |
| Applicable GST rate | 12% (up to 21.09.2025) and 18% (from 22.09.2025) Per S.No.26 of Notification No.11/2017-CT (Rate) as amended |
| Classification if not job work | Not answerable As the answer to the first question was affirmative |
The Authority ruled that the applicant's galvanising services qualify as job work under Section 2(68) of the CGST Act. It determined that such services attract a 12% GST rate for registered persons, though this rate was subsequently increased to 18% effective from 22.09.2025 per a recent notification.
Reasoning
The Authority relied on the definition of job work under Section 2(68) of the CGST Act, 2017, noting that the applicant processes goods belonging to another registered person. It examined Notification No. 11/2017-CT (Rate) and its subsequent amendments, specifically the entry at S.No.26, to determine the applicable tax rates. The Authority also considered the impact of Notification No. 15/2025-Central Tax (Rate) dated 17.09.2025, which **increased the GST rate** for such job work services to 18% effective from 22.09.2025.
Provisions relied on
- Section 2(68) of the CGST Act, 2017
- Section 97(2)(b) of the CGST/TNGST Act, 2017
- Notification No. 11/2017-CT (Rate) dated 28.06.2017
- Notification No. 20/2019-CT (Rate) dated 30.09.2019
- Notification No. 15/2025-Central Tax (Rate) dated 17.09.2025
For the practitioner
This ruling confirms that Hot Dip Galvanising services performed on customer-owned goods constitute **job work** under GST law. Practitioners should note the **rate hike to 18%** effective from 22.09.2025 for such services. It clarifies the tax treatment for registered principals but does not address services provided to unregistered persons.
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/galcons_aar_order.pdf
Legibility of the scan, as read: high.
Prepared 15-10-2026.
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