CBIC has made the following changes in GST Rate in relation to Job Work vide Notification No.- 20/2019-CT (R)  Dated: 30 Sep 2019. Changes are effective from 1st October 2019.Changes in Rates are as follows:-

i) For diamond related services

  • Rate of GST reduced from 5% to 1.5% on supply of job work services in relation to diamonds.

ii) For engineering related services other than bus body bldg.

  • The rate of GST reduced from 18% to 12% on supply of machine job work such as in engineering industry, except supply of job work in relation to bus body building which would remain at 18%.
A Brief analysis of Job Work Rate to be Charged is as follows:-
Job Worker Principal GST Rate* Remarks
Registered Registered 12% W.e.f. 1st Oct 2019 as per Notification No.- 20/2019- CT (R )  Dated: 30 Sep 2019
Registered Unregistered 18% The benefit of Notification No- 20/2019- CT (R ) not available as not covered by definition of Job work#  under GST
Unregistered Registered/ Unregistered NA GST is not applicable as Job worker is not liable for registration

* Not applicable for specified services mentioned GST Tariff Heading 9988 in clause (i), (ia), (ib) and (ic)

Job Work means any treatment or process undertaken by a person on goods belonging to another registered person and the expression job worker shall be construed accordingly; [Sec 2(68)]

As per the above-mentioned definition, Principal shall be registered person to qualify Job Work under GST.

It is recommended to Job Workers to charge 12% GST on supplies made to Registered Principals and 18% GST on supplies made to Unregistered Principals.

(CA Hemant Singhal – ca.hsinghal@gmail.com)

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47 Comments

  1. K.v.srikanth says:

    I am doing job work in electronic industry kindly let me know GST rate applicable. Whether 12% or 18%. . Components are supplied by principal.

  2. Ashokkumar Gupta says:

    Tax liability on Job work for candle and Dhoop batti – Agarbatti manufacturing.
    Where unregistered person doing job for registered dealer

  3. Yuvess says:

    I m registered jewellery dealer. If I give job work of making gold jewellery to unregistered job worker should I pay Gst5% via RCM or not… thank you

  4. Karibasaiah metikurke matad says:

    GOLDSMITH TAKEN PRECIOUS METALS FOR MAKING ORNAMENTS IN THE FIELD OF GOLD AND SILVER ,IS IT JOB WORK OR NAT IF YES CODE NO WHICH IS IN THE RETURN OF INCOME .

  5. naeem ahmed says:

    WE HAVE TO DO INSTALLATION & COMMISSIONING OF OUR MANUFACTURED ELECTICAL CONTROL PANELS WHAT WILL BE THE JOB WORK RATE WILL BE APPLIED TO SERVICE FALLING UNDER HSN SAC 9987

  6. naveen c says:

    A person is doing engineering job work for the company he had made sale of 18% instead of 12% from october 1st & also he made payment in Gst 3B So how to Reclaim the remaining 6% in gst

  7. CHETAN HATHI says:

    my question is as i am Job worker for Metal items SAC code is 998933
    Metal forging, pressing, stamping, roll forming and powder metallurgy services
    how much GST should i charge for the same 18 or 12% as per new notification pl reply

  8. darshana says:

    Dear Sir,

    If my line of business, manufactures but some job give (part of my fixed Assets ) given for out sousing and material return to my house .In that case ( at the time of Eway bill ) what % applicable ( 9% or 6%) my base is Raw material ( Purchase %9%) and sale also 9%

  9. Devendra Patil says:

    Being a manufacturer of Corrugated Boxes, what is the Rate of GST on labour charges, and the effective date of new rate of GST ???

  10. T.R. SHARMA says:

    WHILE SENDING MACHINE/MACHINERY PARTS FOR JOB WORK TO A REGD. JOB WORKER ON DELIVERY CHALLAN. IS THE GST CHARGEABLE ON COST OF MACHINE/MACHINERY PARTS?

    1. BHUPINDER SINGH says:

      WE HAVE TO DO INSTALLATION & COMMISSIONING OF OUR MANUFACTURED ELECTICAL CONTROL PANELS WHAT WILL BE THE JOB WORK RATE WILL BE APPLIED TO SERVICE FALLING UNDER HSN SAC 9987

  11. sunil bhageria says:

    But there are different interpretation some says that in case of Job work amounting to manufacture the rate will be 18 % as defined in point no (iv) of Heading 9988. And this 12 % is applicable on other job work not amounting to manufacturing. Even in taxguru 2-3 artciles of different authors says the above.

    1. hsinghal86 says:

      There was a confusion in this regard earlier amongst the professionals, however it pretty clear now from the press release of 37th GST Council meeting and language of the notification that the GST rate on Job work is 12% irrespective of the fact that it is amounting to manufacture or not. However, in the case of job work of unregistered principals job work will continue to be 18%.

      1. Lalit Jain says:

        As per my understanding GST rate on Job work for other than specified categories is still 18 %
        Heading 9988 Sl No 26 item (iv) which reads after amending Notification no 20/2019 CT (Rate) dated 30.09.2019 as under
        Manufacturing Services on Physical Inputs (goods) owned by others,
        other than (i), (ia), (ib), (ic), (ii), (iia) and (iii) above CGST Rate 9% (IGST Rate 18%.)

  12. Amrit pal says:

    We are a registered job worker under the tariff head 8543 and 998898.Getting all the sub assembly from a registered principal and in turn are supplying them finished goods.
    Kindly specify the job work GST
    Thanks and regards

  13. A Wilson says:

    Sir,

    Principal & Job Work both are registered and the Job Work is Manufacturing Process [ Raw-materials into New Product ]. Pls confirm the Rate 12% or 18%.

  14. Vinod Daga says:

    Whether 12% rate is applicable to all job work( registered to registered) irrespective of job work amounting to manufacture or not. As in pre GST era job work amounting to manufacture was subject to levy of excise duty and rest were subject to levy of service tax . Please clarify. Thanx

  15. Dinesh says:

    sir, what is the new Gst RATE of JOB WORKS on Iron & Steel products like CUTTING by MACHINES of Roofing Trafford sheets, Iron coils conversion to RIDGES used for joints in Tresswork. Also job works by Machines on Aluminum products conversion to plumbing products like elbows, Clambs, caps, guttor, Caps etc.

    1. hsinghal86 says:

      GST Rate will be 12% on supplies of Job work to Registered Principals and 18% in case of supplies to Unregistered Principals on both the abovementioned cases.

    1. hsinghal86 says:

      GST can not be charged in case of unregistered persons.
      RCM is also not applicable as on date on purchases from Unregistered persons.

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