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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 – [email protected])

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57 Comments

  1. Santosh Kadam says:

    Me footwear footwear pattern designing karta hu anny companies ke liye mujhe as a job work mere kaam par kitna gst lagega kripya karke jaroor batayen

  2. GIRDHAR KERALIYA says:

    Our contractor is doing bearing assembly work on piece base. Can we considerred as job work service or manpower supplying service ? Both are registered person

    1. Saravanan says:

      If the work is done at the contractor premises it is treated as Job work and if the work is done at your premises then it is treated as Manpower supply.

  3. Areef Brass Metal Works says:

    I’m doing a job work for stainless steel pipes, which is supplied by a party.I want to know what will be the GST percentage for this labour work

  4. KAILASH CHAND SHARMA says:

    PLZ COMPUTER TYPING /COMPUTER PRINTOUT, SPIRAL BINDING, PHOTOCOPY JOB WORK WHICH RATE ? AND WHICH HSN CODE. 12% OR 18%. I AM CONFUSE

  5. 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.

  6. Ashokkumar Gupta says:

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

  7. 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

  8. 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 .

  9. 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

  10. 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

  11. 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

  12. 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%

  13. 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 ???

  14. 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?

  15. 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.

  16. 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

  17. 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%.

  18. 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

  19. 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.

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