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

GST rate classification for job work creates ambiguity between manufacturing services and job work, risking litigation and compliance burdens.
Amendment by Notification No.20/2019 alters the GST classification by adding a sub entry for "services by way of job work other than (i), (ia), (ib) and (ic)", creating a central statutory question whether particular treatments are "manufacturing services" or "job work". The distinction is outcome determinative because different tariff entries and rates apply, and the amendment therefore imposes on taxpayers the task of segregating activities, consulting precedents and facing potential compliance enquiries and litigation absent departmental clarification.