Need Clarification on SAC
My nature of business is mentioned below:
- Purchase of Raw Silk (HSN Code 5002) – Purchase of raw silk from Government Regulated Market (GoK Department of Sericulture); on every purchase we are charged 0.50% of the purchase value as “Market Fee“;
- My query is do i have to pay GST on (Market Fee) the value of 0.50% under RCM, if not under what head should i show to include in cost of purchase…?
2. Processing of Raw Silk to
- Twisting (Finished Goods for Sale)
- Dyeing / Colour (Finished Goods for Sale)
I pay labour charges (outsource) for both the activities mentioned above (Twisting / Dyeing) as Job Work; all these jobwork is done by URDs
Now i need to pay GST on the Jobwork under services under the RCM (Reverse Charge Mechanim)
- My query is under which service head (SAC) should i have to pay the GST and
- At what rate should i pay this
- After processing under which HSN Code can i sell my finished product
Clarification on the above issues will be of great help to me to be prepared for the GST compliances.
Thanking you in advance.