News & Media 17th Mar 2020

Settling the Unsettled Concept of Job Work

Authors

Harsh Shah Partner | Mumbai

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In a recent landmark ruling in the case of JSW Energy Ltd. [TS-133-AAAR-2020-NT], AAAR held that ‘coal’ supplied by the principal JSW Steel Ltd. to JSW Energy Ltd. constitutes an input for ‘electricity manufacturing’, holding the transaction between them to be ‘job-work’ under GST. The de novo order passed pursuant to HC direction was diametrically different from the earlier AAAR order [TS-975-AAAR-2018-NT] in the same matter. Harsh Shah, Partner and Shreya Mundhra, Associate Manager, Economic Laws Practice, co-author an article in Taxsutra, on implications across industries post this judgement.

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