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
- What is the GST rate applicable on job work services in relation to handicraft items made of brass and wood?
- Whether Resin Statues/Vases are classifiable under HSN 97030090?
- Whether Deity made of Marble and Deity made of Wooden are exempt from GST under S. No. 124 of Notification No. 09/2025-Central Tax (Rate) and what will be the correct 8-digit HSN for these items?
Facts
The applicant intends to engage in the business of handicraft items made of brass, wood, resin, and marble. They propose to send raw brass and wood to job workers for processing into statues and handicraft items. Additionally, they seek classification for resin statues and exemption status for marble and wooden deities.
Held
The authority held that job work services for handicraft items attract 5% GST, provided the applicant is a registered person. Resin statues are classified under HSN 3926 40 29 rather than 9703. Deities made of marble and wood are exempt from GST under the specified notification, with specific 8-digit HSN classifications provided.
Reasoning
The ruling relies on Section 2(68) of the GST Act defining job work and Notification No. 11/2017-Central Tax (Rate) as amended. It clarifies that the concessional 5% rate for job work is unavailable to unregistered persons, who would otherwise face an 18% rate. Resin statues are deemed mass-produced articles of plastic under Chapter 39, while marble and wooden deities qualify for exemption under S. No. 124 of the relevant notification, provided they are actual objects of worship.
Provisions relied on
- Section 2(68) of the CGST Act
- Section 97(2) of the CGST Act
- Section 103 of the CGST Act
- Notification No. 11/2017-Central Tax (Rate)
- Notification No. 32/2017-Central Tax
- Notification No. 09/2025-Central Tax (Rate)
- Notification No. 10/2025-Integrated Tax (Rate)
For the practitioner
This ruling confirms that **job work concessions** are strictly tied to the registration status of the principal. It provides clarity on the **classification of resin art** as plastic goods rather than fine art and confirms the **exemption for religious deities** made of marble or wood. It does not decide whether specific items qualify as 'handicraft' in practice, as that remains a question of fact.
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 04-09-2026.
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