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GST Rate for Job Work, Goods and Services Tax - GST

Issue Id: - 115496
Dated: 5-10-2019
By:- vibhor gupta
GST Rate for Job Work

  • Contents

We have a query regarding Latest GST Notification No 22 for Job Work

We are doing Job work of laser cutting of iron Sheets..

a) Sometimes we provide iron ourselves and charge cost of iron (18%) and job work separately on the invoice.

b) sometimes iron is supplied by client and we do job work only and we charge job-work on invoice..

My query is in above case whether GST rate would be 18% or 12%..

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Posts / Replies

Showing Replies 1 to 4 of 4 Records

1 Dated: 6-10-2019

It is 12 %. Cutting does not amount to manufacture.

Manufacture - Slitting of HR/CR coils of Iron & Steel sheets not amounts to manufacture

Circular No. 811/8/2005-CX., dated 2-3-2005

Manufacture - Pickling and oiling of metals as preparatory steps not amount to manufacture

Circular No. 927/17/2010-CX., dated 24-6-2010

2 Dated: 6-10-2019

It is also covered under residual entry (serial no.26) of Notification No.11/17-CT(Rate) dated 28.6.17 as amended vide Notification No. 20/17-CT(Rate) dated 30.9.19 effective from 1.10.19. From both angles, it is 12%.

Also see replies against Issue ID No.115479 dated 1.10.19.

It is expected that Board may issue clarification in this context.

3 Dated: 6-10-2019
By:- Ganeshan Kalyani

The process need to be understood. If out of the process a new product emerges then it is manufacturing process and applicable GST is 18%. And if the process does not amounts to manufacture then the rate is 12%.

4 Dated: 6-10-2019
By:- atul rathod

1. Primarily it’s based on manufacturing critiria.

2. Secondary in manufacturing also they have bifurcated between registered person and unregistered person.

3. If Job work is done on goods owned by registered person- 12% (entry-26(i(id)))

4. If job is done on goods owned by unregistered person -18% (entry-26(iv)).

5. If its not amount to manufacturing: than its 18%.

The reason for bifuracation between registered and unregistered person is -terminology used in 26(i(iv)) is job work-which linked to reg person and 26(iv) is for over all linked to unresgitered as well.


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