Hsn code and tax rate on ginning and pressing job work

Reply—By Ginning it means Raw Cotton obtained as Agl produce is put to process to separate Cotton Seed and Cotton from Raw Cotton. For this process to be done is normally undertaken by factories doing exclusively this separation process by charging Job Work Charges. 

Services by way of job work in relation to textiles and textile products falling under chapter 50 to 63 attract 5% GST. Cotton is also covered under chapter 52, thus GST rate will be 5% on job charges on cotton Ginning and pressing charges on inputs of registered person. However, if services are provided to an unregistered person the rate will be 18%. SAC 998821 will be applicable