Article discuss GST Provisions applicable to Job Work and Manufacturing services. Dear Colleagues before going to subject we have to refer meaning of the following words under GST Scenario.

1. Meaning of Job Work and Job Worker : As per Section 2(68) of the CGST Act,2017, the meaning of word “ Job Work ,that under taking any treatment or processes by a person on goods belonging to another register person and the expression” job worker” shall be constructed accordingly.

2. Meaning of Goods : As per Section2(52) of the CGST Act,2017, goods means every kind of movable property other than money and securities, Thus, the term job work is confined to the process undertaken by the job worker on movable goods only.

3. Meaning of Treatment or Process: The term Process has not define under GST law, Process means a continuous mode, method or operation by which a result r change or effect is produced on the commodity which is subject to processing . It may not , however, always bring about an altogether new commercial commodity. In other words, processing is some kind of development or change or preparation for the purpose of sale.

4. Meaning of Manufacture: The term Manufacturer implies a change but every change is not manufacturer. Something more necessary. There must be a transaction as a result of the process undertaken on the product and a new and different article, having distinctive name and character ,must emerge .

5. Meaning of Principal: As per Section 143(1) of the CGST Act,2017,The term “Principal” means a registered person sending taxable goods for job work.

6. Treatment of job work as “service”: As per clause 3 of Schedule II of the GST Law,2017, any treatment or process which is being applied to another person’s goods is considered as “supply of services”.

Dispatch of consumable goods to the job worker: It was held that the meaning attributed to Inputs in the Explanation to Section 143 takes care of the difference between the inputs sent to job worker and the goods returned after some intermediate treatment/process like galvanization that may exhaust some of the inputs sent out. Thus, the Zinc, etc. exhausted in the process of galvanizing need not be physically returned. If the galvanized structures are returned, that will be sufficient compliance of section 143(1)(a) of the CGST Act,2017.

Whether the term “Job worker” includes “own unit”: When the goods are sent for job work to another unit of the same person , an interesting question arises, whether the transfer would be considered as ‘Stock Transfer” or “transfer for job work” .In my opinion, since various units of the same person have been treated as distinct persons under the GST Law,2017, Transfer to own units would be considered as transfer to job worker. It is important to mention here that goods may be transferred to job worker without payment of tax, subject to other conditions like intimation to GST authorities, return within 1 year etc., whereas, it is not possible in case of stock transfer.

Can the person also use his own goods during the process: It is significant to note that activities involving two or more taxable goods and / or services (other than in relation to immovable property) have been considered as composite contracts under GST Law,2017. Further, in general, no process or treatment can be completed without adding some incidental goods. Even in case of bleaching process, some chemicals are involved. However, the law says that process must be is applied to another person’s goods. However, if the job worker uses material in a manner so that the goods used by hi become the principal supply, it would not be covered under this clause.

As per circular no.38/12/2018-GST dated 26th March,2018(para-5): The definition of job work as contained in section 2(68) of the GST Law,2017, entails that the job work is treatment o process undertaken by a person on goods belonging to another registered person. Thus, the job worker is expected to work on the goods sent by the principal and whether the activity is covered within the scope of “ Job Work” or no would have to be determined on the basis of facts and circumstances of each case. Further, it is clarified that the job worker, in addition to the goods received from the principal, can use his own goods for providing the services of job work.

Under job work services, the output is not owned by the unit providing this service, Therefore, the value of the services is based on the service charge paid, not the value of the goods manufactured. The job worker, as a supplier of services, is liable to pay GST tax if he is liable to be registered. He shall issue an invoice at the time of supply of the services The value of service would include not only the service charges but also the value of any goods or services used by him for supplying the job work services, if recovered from the principal.

Input tax credit on inputs and capital goods sent for job work: As per Section 19 of the CGST Act,2017, Principal (registered under the GST Act) shall, subject to such conditions and restrictions as ay be prescribed , be entitled for input tax credit on inputs and capital goods sent to a job-worker for job-work. It is not necessary that inputs and capital goods must first be received at the premises of the principal. In other word, the principal may ask his supplier of goods to send goods directly to the job worker.

Goods should be received back within the specified period as under:

Inputs :- 1 year of their being sent out,

Capital Goods:- 3 years of their being sent out.

The period of 1 year and 3 years may, on sufficient cause being shown , be extended by the Commissioner for a further period not exceeding 1 year and 2 years respectively. Also , if the inputs/capital goods are sent directly to job worker then the aforesaid period shall be counted from the date of receipt of inputs/capital goods by the job worker. If inputs or capital goods send for job work are not received back or supplied in accordance with section 143(1) within the specified period, it shall be deemed that such inputs ad been supplied by the principal to the job worker on the day when the said inputs/capital goods were sent out (or the date when received by the job worker, where goods are directly sent to job worker). Since the delay under this section is linked to the date of dispatch, therefore, the principal would be liable to pay interest also for the intervening period. These provisions are not applicable to supply of moulds and dies, jigs and fixtures or tools to a job-worker for job-work.

Special Procedure for removal of goods under Section 143 of the CGST Act,2017:

  1. As per Section 143(1) of the CGST Act,2017 , a registered person (the Principal)may, under intimation and subject to such conditions as may be prescribed send any inputs and /or capital goods without payment of tax, to a job worker for job work and from there subsequently send to another job worker and likewise.
  2. As per Section 143(2) of the CGST Act,2017,If benefit under this section is availed, the principal shall be responsible and accountable for all transactions between him and the job worker.
  3. As per Rule 45(3) of GST Rules,2017,details of challans in respect of gods dispatched to a job worker or received from a job worker during a tax period shall be included in Form GST ITC -04 furnished for that period on or before 25th day of the month succeeding the said quarter r within such further period as may be extended by the Commissioner by a notification n this behalf.

Services treated as Supply of Job Work and Manufacturing Services under GST

Manufacturing Services: Manufacturing services on physical inputs owned by other: The services included under Heading 9988 are performed on physical inputs owned by units other than the units providing the service. As such, they are characterized as outsourced portions of a manufacturing process or a complete outsourced manufacturing process. Since this Heading covers manufacturing services, the output is not owned by the unit providing this service. Therefore, the value of the services in this Heading is based on the service fee paid, not the value of the goods manufactured. Food, beverage and tobacco manufacturing services are comes under Manufacturing Services activates and sub-heading 9981.

  1. Meat processing services: This services includes preparation of meat for human consumption. Meats are often classified by the type of animal from which they are taken. Most commonly consumed meats are specifically identified by the live animal from which they come. These process called as “Meat Processing Services” and Services Accounting Code is 998811 as per GST Law,2017.
  2. Fish Processing Services: This services includes fish processing refers to the processes associated with fish and fish products between the time fish are caught or harvested, and the time the final product is delivered to the customer for human consumption. These process is called “Fish Processing Servicesand Services Accounting Code is 998812 as per GST Law,2017.
  3. Fruit and vegetable processing services: This services includesfresh vegetables receiving – unloading – washing – drying – sorting, later providing integration in vegetables peeling / dicing / crushing processing and dehydrating, these services treated as Fruit and Vegetable processing services and Services Accounting Code is 998813 as per GST Law,2017.
  4. Vegetable and animal oil and fat manufacturing services: These services include Oil extraction by traditional methods often requires various preliminary operations, such as cracking, shelling, dehulling, etc., after which the crop is ground to a paste. The paste, or the whole fruit, is then boiled with water and stirred until the oil separates and can be collected. Such traditional methods have a low rate of efficiency, particularly when performed manually. Oil extracted by pressing without heating is the purest method and often produces an edible product without refining.Modern methods of oil recovery include crushing and pressing, as well as dissolving the crop in a solvent, most commonly hexane. Extracting oil with a solvent is a more efficient method than pressing. The residue left after the removal of oil (oilcake or meal) is used as feedstuff. Crude vegetable oils are obtained without further processing other than degumming or filtering. To make them suitable for human consumption, most edible vegetable oils are refined to remove impurities and toxic substances, a process which involves bleaching, deodorization and cooling (to make the oils stable in cold temperatures). The loss involved in these processes ranges from 4 to 8 percent. The FAO concept includes raw, refined and fractioned oils, but not chemically modified oils.
    With some exceptions, and in contrast to animal fats, vegetable oils contain predominantly unsaturated (light, liquid) fatty acids of two kinds: monounsaturated (oleic acid – mainly in extra virgin olive oil) and polyunsaturated (linoleic acid and linolenic acid – in oils extracted from oilseeds).Vegetable oils have a wide variety of food uses, including salad and cooking oils, as well as in the production of margarine, shortening and compound fat. They also enter into many processed products, such as mayonnaise, mustard, potato chips, French fries, salad dressing, sandwich spread and canned fish. Industrial and non-food uses of vegetable oils include the production of soaps, detergents, fatty acids, paint, varnish, resin, plastic and lubricants.
    Animal fats that are obtained in the course of dressing the carcasses of slaughtered animals (slaughter fats), or at a later stage in the butchering process when meat is being prepared for final consumption (butcher fats). Butter and similar products obtained from milk are included in this services.Processed animal fats include lard obtained by melting raw pig fat and tallow obtained from raw fat of other animal species. Animal fats are largely used in the production of margarine, shortening and compound fat. They also enter into many processed food products. Industrial and non-food uses of animal fats include the production of soaps, fatty acids, lubricants and feedstuffs. Services Accounting Code is 998814 as per GST Law,2017.
  5. Dairy products manufacturing services: Dairy products manufacturing services includes “Pasteurization is a heat treatment process that extends the usable life of milk and reduces the numbers of possible pathogenic microorganisms to levels at which they do not represent a significant health hazard. Milk can be processed further to convert it into high-value, concentrated and easily transportable dairy products with long shelf-lives, such as butter, cheese and ghee. Dairy products manufacturing services includes “Processing of dairy products gives small-scale dairy producers higher cash incomes than selling raw milk and offers better opportunities to reach regional and urban markets. Milk processing can also help to deal with seasonal fluctuations in milk supply. The transformation of raw milk into processed milk and products can benefit entire communities by generating off-farm jobs in milk collection, transportation, processing and marketing. Services Accounting Code is 998815 as per GST Law,2017.
  1. Other food product manufacturing services: This services includes grain mill products manufacturing services, starch and starch product manufacturing services, bakery product manufacturing services, sugar manufacturing services, cocoa , chocolate ad sugar confectionery manufacturing services, macaroni , noodles, couscous and similar farinaceous products manufacturing services, prepared meals and dishes manufacturing services and other food product manufacturing services n.e.c. Services Accounting Code is 998816 as per GST Law,2017.
  1. Prepared animal feeds manufacturing services:This services includes “Feed manufacturing and the associated quality control programme are keys to successful fish and animal culture. Unless the fisheries biologist understands and specifies the activities of the feed mill and its laboratory, profitable fish farming and animal farming Like poultry etc., will be a matter of chance. Dry feeds may be ground, sifted, screened, mixed, compressed, expanded, texturized, coloured and flavoured. By one or more of these processes, a wide variety of ingredients can be prepared into a standardized product. Since most fish have size and texture preferences and often react to colour, odour, and flavour, processing research is an integral part of fish and animal culture” .The Services Accounting Code is 998817 as per GST Law,2017.
  1. Beverage manufacturing services: This service includes distilled alcoholic beverage manufacturing services, wine manufacturing services, malt and malt liquor manufacturing services and soft drink manufacturing services. Services Accounting Code is 998818 as per GST Law,2017.
  2. Tobacco manufacturing services: This services includes” All establishments engaged in manufacturing cigarettes, cigars, smoking and chewing tobacco, snuff, and reconstituted tobacco and in stemming and redrying tobacco”. This also includes the manufacture of nontobacco cigarettes. This does not include the manufacture of insecticides from tobacco byproducts. Services Accounting Code is 998819 as per GST Law,2017.
  3. Textile manufacturing services: This services includes textiles fiber manufacturing services, textile weaving services, textile finishing services, knitted and crocheted fabric manufacturing services, made-up textiles article manufacturing services , carpet and rug manufacturing services, cordage, rope, twin and netting manufacturing services and other textile manufacturing services n.e.c. Services Accounting Code is 998821 as per GST Law,2017.
  4. Wearing apparel manufacturing services : This services includes fur apparel manufacturing services, other than fur apparel manufacturing services and knitted and crocheted apparel manufacturing services. Services Accounting Code is 998822 as per GST Law,2017.
  5. Leather and leather product manufacturing services: This services includes leather tanning and dressing services, fur dressing and dyeing services, luggage manufacturing services ad footwear manufacturing services. Services Accounting Code is 998823 as per GST Law,2017.
  6. Wood and wood product manufacturing services: This services includes wood manufacturing services, veneer sheet and wood panel manufacturing services, carpentry manufacturing services, wooden containers manufacturing services and other wood product manufacturing services. Services Accounting Code is 998831 as per GST Law,2017.
  7. Paper and paper product manufacturing services: This services includes pulp, paper and paperboard manufacturing services, corrugated paper and paperboard manufacturing services and other paper article manufacturing services. Services Accounting Code is 998832 as per GST Law,2017.
  8. Coke and refined petroleum product manufacturing services: This services includes coke includes coke oven products manufacturing services and refined petroleum products manufacturing services. Services Accounting Code is 998841 as per GST Law,2017.
  9. Chemical product manufacturing services: This services includes basic chemicals manufacturing services, fertilizer manufacturing services, agrochemical product manufacturing services, paint manufacturing services, soap, detergent, cleaning preparation and perfume manufacturing services, man-made fiber manufacturing services and other chemical products manufacturing services n.e.c. Services Accounting Code is 998842 as per GST Law,2017.
  10. Pharmaceutical product manufacturing services: This services includes “pharmaceutical industrydiscovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications to be administered (or self-administered) to patients, with the aim to cure them, vaccinate them, or alleviate the symptoms. Pharmaceutical companies may deal in generic or brand medications and medical devices. This activates considered as Pharmaceutical product manufacturing services. . Services Accounting Code is 998843 as per GST Law,2017.
  11. Rubber product manufacturing services: This services includes tyre manufacturing services and other rubber products manufacturing services. . Services Accounting Code is 998851 as per GST Law,2017.
  12. Plastic Product manufacturing services: This services includes molding of articles of plastics, manufacturing of plastic items which was used in regular life by the consumer and plastic chairs, plastic furniture etc., These manufacturing activates treated as Plastic Product manufacturing services . Services Accounting Code is 998852 as per GST Law,2017.
  13. Other non-metallic mineral product manufacturing services: This services includes glass manufacturing services, refractory product manufacturing services , clay building material manufacturing services, porcelain and ceramic product manufacturing services, cement, lime and plaster manufacturing services, concrete, cement and plaster article manufacturing services, stone cutting, shaping and finishing services other non-metallic mineral product manufacturing services. Services Accounting Code is 998853 as per GST Law,2017.
  14. Basic Metal manufacturing services: This service includes basic iron and steel manufacturing services and basic precious and other non-ferrous metal manufacturing services. Services Accounting Code is 998860 as per GST Law,2017.
  15. Structural metal product, tank, reservoir and steam generator manufacturing services: This services includes “Structural metal product manufacturing services, tank, reservoir and metal container manufacturing services and steam generator manufacturing services. Services Accounting Code is 998871 as per GST Law,2017.
  16. Weapon and ammunition manufacturing services: This services includes manufacturer of metal weapons like guns, pistols for used by military, police and security forces etc. Metal treatment for manufacturing guns, pistols etc., these services are treated as weapon and ammunition manufacturing services. Services Accounting Code is 998872 as per GST Law,2017.
  17. Other fabricated metal product manufacturing and metal treatment services: This services includes metal treatment and coating services general machines services, cutlery, hand tool and general hardware manufacturing services and other fabricated metal products manufacturing services. Services Accounting Code is 998873 as per GST Law,2017.
  1. Computer, electronic ad optical product manufacturing services: This service includes electronic component and board manufacturing services, computer and peripheral equipment manufacturing services, Communication equipment manufacturing services, consumer electronics manufacturing services , measuring , testing, navigating and control equipment manufacturing services, watch and lock manufacturing services, irradiation, electro medical and electrotherapeutic equipment manufacturing services, optical instrument and photographic equipment manufacturing services and magnetic and optical media manufacturing services. . Services Accounting Code is 998874 as per GST Law,2017.
  2. Electrical equipment manufacturing services: This services includes electric motor, generator ,transformed and electricity distribution and control apparatus manufacturing services, battery and accumulator manufacturing services, fiber optic cable manufacturing services, other electronic and electric wire and cable manufacturing services, wiring device manufacturing services, electric lighting equipment manufacturing services, domestic appliance manufacturing services and other electrical equipment manufacturing services. Services Accounting Code is 998875 as per GST Law,2017.
  3. General Purpose machinery manufacturing services: Tis services includes engine and turbine manufacturing services, fluid power equipment manufacturing services , other pump, compressor, tap and valve manufacturing services, bearing, gear, gearing and driving element manufacturing services, oven, furnace and furnace burner manufacturing services, lifting and handling equipment manufacturing services, office machinery and equipment (except computers and peripheral equipment) manufacturing services, power-driven hand tool manufacturing services and other general-purpose machinery manufacturing services. Services Accounting Code is 998876 as per GST Law,2017.
  4. Special purpose machinery manufacturing services: This service: This service includes agricultural and forestry machinery manufacturing services, metal-forming machinery and machine tools manufacturing services, metallurgy machinery manufacturing services, mining quarrying and construction machinery, manufacturing services, food, beverage and tobacco processing machinery manufacturing services, textile apparel and leather production machinery manufacturing services and other special-purpose machinery manufacturing services. Services Accounting Code is 998877 as per GST Law,2017.
  5. Motor vehicle and trailer manufacturing services: This service includes motor vehicles manufacturing services, trailers and semi-trailer manufacturing services and motor vehicle parts and accessories manufacturing services. Services Accounting Code is 998881 as per GST Law,2017.
  6. Other transport equipment manufacturing services: This services includes ship building services, pleasure ad sporting boat manufacturing services, railway locomotive and rolling stock manufacturing services, air and spacecraft manufacturing services, military fighting vehicle manufacturing services, motorcycle manufacturing services, bicycles and invalid carriage manufacturing services and other transport equipment manufacturing services. Services Accounting Code is 998882 as per GST Law,2017.
  1. Furniture manufacturing services: This services includes manufacturing of furniture means the material staging and production of tangible personal property by procedures commonly regarded as manufacturing, processing, fabrication, or assembling which changes some existing material into new shapes, new qualities, or new combinations of furniture relating to office, show room and household furniture. Services Accounting Code is 998891 as per GST Law,2017.
  1. Jewelry manufacturing services: This service jewelry manufacturing processing includes most advance technologies and dedicated research. Jewelry making is a very composite process undergoing a long and slow procedure making it tough from the initial point to the concluding point. Each product undergoes a series of procedures before we het the net product as a beautiful jewelry product. The natural components of jewelry (stones, metals and accessories) will undergo multiple processes. These jewelries are unique and involve a lot of time and skill. Except for personalized jewelry which are handcrafted, most f the jewelries are executed by casting achiness. These services are treated as supply of Jewelry Manufacturing Services. Services Accounting Code is 998892 as per GST Law,2017.
  2. Imitation jewelry manufacturing services: This services includes manufacturing of imitation jewelry articles of gold, silver and metal items manufacturing service are treated as Imitation manufacturing services. Services Accounting Code is 998893 as per GST Law,2017.
  3. Musical Instrument manufacturing services: This service includes a musical instrumentis an instrument created or adapted to make musical sounds. In principle, any object that produces sound can be considered a musical instrument—it is through purpose that the object becomes a musical instrument. Musical instruments are constructed in a broad array of styles and shapes, using many different materials. This services treated as musical instrument manufacturing services. Services Accounting Code is 998894 as per GST Law,2017.
  4. Sports goods manufacturing services: This services includes the Sports goods manufacturing servicesunder Goods and Service Tax classification. SAC (Services Accounting Code) are used for the identification of the service. This service comes under heading Manufacturing services on physical inputs (goods) owned by others. Services Accounting Code is 998895 as per GST Law,2017.
  5. Game and toy manufacturing services: This services includes “the Game and toy manufacturing services”under Goods and Service Tax classification. SAC (Services Accounting Code) are used for the identification of the service. This service comes under heading Manufacturing services on physical inputs (goods) owned by others. Services Accounting Code is 998896 as per GST Law,2017.
  1. Medical and dental instrument and supply manufacturing services :This services includes the Medical and dental instrument and supply manufacturing servicesunder Goods and Service Tax classification. SAC (Services Accounting Code) are used for the identification of the service. This service comes under heading Manufacturing services on physical inputs (goods) owned by others. . Services Accounting Code is 998897 as per GST Law,2017.
  2. Other manufacturing services n.e.c.: This services includes the other manufacturing services n.e.c.under Goods and Service Tax classification. SAC (Services Accounting Code) are used for the identification of the service. This service comes under heading Manufacturing services on physical inputs (goods) owned by others. . Services Accounting Code is 998898 as per GST Law,2017.

Requirement of Registration for Job Work and Manufacturing Services under GST

As per Section 22 (1) of CGST Act,2017 every supplier shall be liable to take registration in every State or UT from where he makes a taxable supply of goods /or services ,if his aggregate turnover in a financial year exceeds threshold limit of Rs.20 Lakhs or 10 Lakhs in Easter States.

Example for aggregate turnover

(i) If any taxable person (PAN Based) is having business turnover Rs.15 Lakhs and Rs.6 lakhs rental income on immovable property liable to to take GST registration.

(ii)If any taxable person ( PAN Based)is having tax business turnover Rs 13 Lakhs and Rs.6Lakhs rental income on immovable property not require to take registration (Rs.13 plus Rs. 6 lakhs = 19 Lakhs ,no obligation to take registration.

(iii) Is any taxable person (PAN Based) is having Rs.25 Lakhs business turnover and such business in “Individual Status “ as per Individual PAN Based he has to take registration for such business and income from immovable property belongs to (HUF PAN BASED) and turnover on immovable property of Rs.6 lakhs, there is no obligation to take GST registration under HUF capacity.

Input Tax Credit 

  • Input Tax credit is available to the service providers who are having GST registration as per Sec.22 & 24 of the CGST Act and claim ITC as per Sec.16 of the CGST Act,2017. Who are providing supply of services in relation to exempted services (Agricultural related services) ,such services providers are not allowed to claim Input Tax Credit.
  • Input Tax Credit shall be determined in accordance with rule 42 or 43of the GST Rules, based upon taxable and exempted turnover.

 Applicable GST Rate on job work services

GST on Job Work – GST Rate chart with effect from 1st day of October, 2019 after considering Amendment vide Notification No. 20/2019- Central Tax (Rate) Dated: 30th September, 2019

Description of Service IGST (%) CGST + SGST/UTGST
26 (i) Services by way of job work in relation to-(a) Printing of newspapers;

(b) Textiles and textile products falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975;

(c) all products falling under Chapter 71 in the First Schedule to the Customs Tariff Act, 1975;

(d) Printing of books (including Braille books), journals and periodicals;

(da) printing of all goods falling under Chapter 48 or 49, which attract IGST@5% or nil

(e) Processing of hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975;

(ea) manufacture of leather goods or foot wear falling under Chapter 42 or 64 in the First Schedule to the Customs Tariff Act, 1975 respectively;

(f) all food and food products falling under Chapters 1 to 22 in the First Schedule to the Customs Tariff Act, 1975;

(g) all products falling under Chapter 23 in the First Schedule to the Customs Tariff Act, 1975, except dog and cat food put up for retail sale falling under tariff item 23091000 of the said Chapter;

(h) manufacture of clay bricks falling under tariff item 69010010 in the First Schedule to the Customs Tariff Act, 1975;

(i) manufacture of handicraft goods.

Explanation.- The expression “handicraft goods” shall have the same meaning as assigned to it in the notification No. 32/2017 -Central Tax, dated the 15th September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1158 (E), dated the 15th September, 2017 as amended from time to time.

5 5
26 (ia)Services by way of job work in relation to-(a) manufacture of umbrella;

b) printing of all goods falling under Chapter 48 or 49, which attract IGST @ 12%

12 12
26 (ib) Services by way of job work in relation to diamonds falling under chapter 71 in the First Schedule to the Customs Tariff Act, 1975; 1.5 1.5
26 (ic) Services by way of job work in relation to bus body building; 18 18
26 (id) Services by way of job work other than (i), (ia), (ib) and (ic) above; 12 12
26 (ii) Services by way of any treatment or process on goods belonging to another person, in relation to-(a) printing of newspapers;

(b) printing of books (including Braille books), journals and periodicals;

(c) printing of all goods falling under Chapter 48 or 49, which attract IGST @5% or Nil.

5 5
26 (iia) Services by way of any treatment or process on goods belonging to another person, in relation to printing of all goods falling under Chapter 48 or 49, which attract IGST@12%. 12 12
26 (iii) Tailoring services. 5 5
26 (iv) Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (id), (ii), (iia) and (iii) above. 18 18

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11 Comments

  1. TAPAS SARKAR says:

    Dear Sir,
    We are engaged in manufacturing and fabrication of equipments required for steel industry.

    if we supply plates to job worker for manufacturing a different equipment, how it will be treated in GST?
    Is it a job work or is it complete manufacturing because plates are raw material supplied on jobc ontract and finished product supplied by job worker is Swivel elbow which is a complete fabricated equipment.
    Question: should I sell the plate to Jobworker with full GST 18% and thereafter buy the entire new equipment with add-on services by Jobworker at the end adding the cost of plate paying full GST 18%?

    1. Madhusudan Mishra says:

      Manufacture is a sub-set of job work which is widely covering ‘treatment or process’. It all depends on the analysis of job work. Information provided by you is not proper to answer exactly. You can consult me further.

  2. Swapnil says:

    will Repairs & Maintenance, Service charges covered under job work in GST. if so Tariff heading is different for job work and repairs and maintenance. No change in Rate of GST for repairs which satisfy definition of job work. Can dealer proving service of repair take the benefit of this notification of reduced tax?

  3. Pankaj Bansal says:

    sir,
    The term “ANOTHER REGISTERED PERSON”‘ do not include ”Distinct Person” therefore in my opinion transfer of goods for Job work between distinct person can not be made with out payment of GST as it do not fulfil job work definition .

    1. B.s.Seethapathi Rao says:

      Dear SirThank you for refer my article and provide your suggestion. Sir, in this regard in my opinion, transfer to own units should be considered s transfer to job worker. It is important to mention here that goods may be transferred to job worker without payment of tax,subject to other conditions like intimation to GST authorities, return with i year etc., I will take care about your suggestion .Thank you

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