Job Work as per Notification No. 20/2019- Central Tax (Rate) dated 30-09-19

[Sushant Karbhari]

Hello!

What is the exact interpretation of the new wording inserted in Notification No. 20/2019- Central Tax (Rate) dated 30-09-19 as per serial number 26 entry no (id) in item (iv) of Original notification dated 28th June 2017?

Does this mean, other than entries of (i),(ia),(ib) and (ic) all other job work will go under 12% instead of the earlier tax rate of 18%?

This would create a massive impact on the whole job work industry.

Need views on the same with regard to interpretation.

Thanks in advance!

AI Summary

Debate on GST Notification No. 20/2019: Confusion Over Reduced Rates for Job Work Services and Potential Legal Challenges. A discussion on the interpretation of Notification No. 20/2019-Central Tax (Rate) dated 30-09-19 regarding Goods and Services Tax (GST) on job work services. Participants debated whether the notification reduces the GST rate from 18% to 12% for job work services, excluding certain specified categories. The discussion highlighted confusion over terms like 'manufacturing services' and 'job work,' and the implications for registered versus unregistered persons. Some participants suggested that the notification's wording could lead to litigation due to varying interpretations, and called for clarification from authorities. Others shared differing views on the applicability of GST rates based on the nature of the service provided.