GST on Job work

[Shrinivas Prabhu]

Recent notification dated 30.09.19 says that the rate on Job work would be 12%, however for manufacturing services rate is 18%.

Ours is a heat treatment activity for auto parts which is purely job work. What rate would be applicable to our services.

Please clarify

[Atul Rathod]

As per my view-9988 is only for manufacturing services on goods owned by others, therefore every activity should fall under manufacturing service to get the beneficial rate of 12%. under 26(i)(id) Once your activity is not manufacture, 18% shall be applicable

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AI Summary

GST rate on job work: classification as manufacturing service determines whether a lower or higher tax rate applies. The applicable GST rate for heat-treatment job work depends on classification: tariff entry 9988 covers manufacturing services on goods owned by others and affords the beneficial job-work rate only to activities qualifying as manufacturing services; if the activity does not amount to manufacture, the higher manufacturing-service rate under provision 26(i)(id) applies.