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Need Clarification on SAC

Vishwas SharmaVishwas Sharma Staff asked 10 months ago

Dear All,
My nature of business is mentioned below:

  1. 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.
Vishwas Sharma