GST Rules for Handicraft Job Work and Religious Statues
- Ruling
- ADVANCE RULING NO. RAJ/AAR/2026-27/10, dated 30.07.2026
- Dated
- 30 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.
In short
The company asked about the GST rates for job work on handicrafts, the classification of resin statues, and tax exemptions for marble and wooden deities.
What has changed
How it worked before
Businesses were often unsure if resin statues qualified as fine art or if specific religious items were exempt, leading to inconsistent tax reporting.
What has changed
The authority ruled that job work for handicrafts is taxed at 5% only if the business is registered. It clarified that resin statues are plastic goods, not fine art, and confirmed that marble and wooden deities are exempt from GST.
Who this affects
Businesses involved in manufacturing, job work, or trading of handicraft items, resin art, and religious statues.
What you should do
This ruling only applies to the specific business that asked the question. You cannot automatically apply this to your own business, as an advance ruling is not a general law. Consult with your tax advisor to see how these findings might apply to your specific products.
The ruling in detail
Authority for Advance Ruling
M/s TUSHAR AGARWAL
ADVANCE RULING NO. RAJ/AAR/2026-27/10, dated 30.07.2026 · Rajasthan
Questions before the authority
- Q1) What is the GST rate applicable on job work services in relation to handicraft items made of brass. The raw brass will be purchased under HSN 7403 and after job work processes, statues of brass will be sold under HSN 8306? Whether the same GST rate on job work services will apply for handicraft items made of wood concerning HSN 4420?
- Q2) Whether Resin Statues/Vases are classifiable under HSN 97030090?
- Q3) Whether Deity made of Marble classifiable under Chapter 68 and Deity made of Wooden classifiable under Chapter 44 are exempt from GST under S. No.124 of Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025 read with corresponding Notification No. 10/2025-Integrated Tax (Rate) dated 17.09.2025 and what will be the correct 8-digit HSN for Deity made of Marble and Deity made of Wooden?
Facts
The applicant intends to engage in the business of handicraft items made of brass, wood, resin, and marble. They propose to purchase raw materials and send them to job workers for processing into finished statues or deities. The applicant sought clarification on the applicable GST rates for these job work services and the correct HSN classification for their finished products.
Ruling
| Question | What the authority ruled |
|---|---|
| GST rate on job work for brass and wood handicrafts | 5% GST (2.5% CGST + 2.5% SGST) Applicable only if the applicant is a registered person and goods qualify as handicraft goods |
| Classification of Resin Statues/Vases | HSN 3926 40 29 Rejected HSN 9703 00 90 as these are mass-produced articles |
| Exemption and HSN for Marble/Wooden Deities | Exempt from GST; HSN 6802 91 00 for marble and 4420 11 00/4420 19 00 for wood Exemption applies to deities, not decorative figures |
The Authority ruled that job work services for handicraft items attract a 5% GST rate, provided the applicant is a registered person and the goods qualify as handicrafts. Resin statues are classified under HSN 3926 40 29 rather than 9703. Deities made of marble or wood are exempt from GST under the specified notification, with specific 8-digit HSN classifications provided for each.
Reasoning
The Authority relied on Section 2(68) of the GST Act to define job work and Notification No. 11/2017-Central Tax (Rate) as amended for the applicable tax rates. It determined that resin statues are mass-produced and thus fall under plastics (Chapter 39) rather than original sculptures (Chapter 97). Regarding deities, it confirmed the exemption under S. No. 124 of the relevant notification, clarifying that the exemption is limited to items that are strictly deities. The classification was determined based on the Customs Tariff Act.
Provisions relied on
- Section 2(68) of the CGST Act
- Section 97(2) of the CGST Act
- Notification No. 11/2017-Central Tax (Rate)
- Notification No. 15/2025-Central Tax (Rate)
- Notification No. 09/2025-Central Tax (Rate)
- Notification No. 10/2025-Integrated Tax (Rate)
- Customs Tariff Act
For the practitioner
This ruling clarifies that the **concessional 5% GST rate** for job work on handicrafts is contingent upon the applicant being a registered person. It provides a clear distinction between **mass-produced resin items** and original sculptures, and confirms the **GST exemption for deities** made of marble or wood. Practitioners should note that the exemption is strictly limited to 'deities' and does not extend to general decorative items.
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/8-order_tushar_agarwal.pdf
Legibility of the scan, as read: high.
Prepared 10-09-2026.
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