Works Contract HS Code & Rate

[KIRTIKUMAR PUROHIT]

Works Contractor done work on material; as per specification of work provided by manufacturer, in manufacturer premises, work contractor with his man power, here my question is:

1 in this case service call as Works Contract or Manpower supply?

2 Any Exemption is available in both case ? if no

3 what is GST Code and Rate?

[vk agarwal]

1. This is not a works contract service but a job-work because inputs have been supplied by the principle manufacturer

2 It is a job-work service,it attracts GST @ 18% on conversion charges only. No exemption except the exemption up to 20 lac turn over

[KIRTIKUMAR PUROHIT]

Thank you very much Team for prompt reply.

[KASTURI SETHI]

SAC 998898

AI Summary

Job-work service: conversion charges subject to GST at the applicable rate, with only a turnover-based exemption. Service performed on materials supplied by the principal manufacturer within the manufacturer's premises by a contractor using contractor manpower qualifies as a job-work service, not a works contract. As a job-work service, GST applies only to conversion charges at the applicable rate, with no exemption except a turnover-linked small business exemption. SAC referenced: 998898.