We are carrying business of ginning and pressing of cotton and also carry out job work activity of ginning of cotton for other traders , we would like to know the rate of service tax on services of ginning of cotton.

Reply-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

If you are also in the business of ginning and pressing of cotton in your own account then the gst will be applicable on the finished product you are selling after doing the process because in this case you are acting as a manufacturer.