GST on job work

[Kaustubh Karandikar]

Respected Experts, in my view, w.e.f. 01.10.19, for job work the GST Rates will be 1) Repairs to machinery / equipment / moulds etc. 18% under Heading 9987 (Sr.No. 25(ii) of Notfn.) 2) Services by way of job work not amounting to manufacture. 12% under Heading 9988 (Sr.No. 26(i)(id) of Notfn.) 3) Services by way of job work amounting to manufacture. 18% under Heading 9988 (Sr.No. 26(ii)(iv) of Notfn.). Kindly confirm.

[Atul Rathod]

My view is:

1) repairs-agreed

2) job work not amounting to manufacture-18% under residuary clause. since entry 26 heading itself starts with manufacturing services on goods owned by others.

3) job work amounting to manufacture -12% under 26(i)(id).

[KASTURI SETHI]

Sh. Kaustubh Karandikar Ji,

I agree with you on all the points. However, the situation calls for clarification from the Board. The phrase, 'Manufacturing Services' has not been defined.

[DR.MARIAPPAN GOVINDARAJAN]

I observed that Shri Kaustubh Karandikar raised many queries but he did not participate in giving any opinion on any question. Sir, this is not the one way - it is the two way.

[KASTURI SETHI]

Sr.Mariappan Govindarajan Ji,

Your observation is right, Sir. Sh.Kaustubh Karandikar Sir is very knowledgeable and experienced person. He must contribute to the Discussion Forum. I am sure his contribution will boost the quality of this forum.

Knowledge is power, if shared. Otherwise it would rust i.e. will become outdated/time-barred.

AI Summary

Clarification Sought on GST Rates for Job Work Services Since October 2019: Confusion Over Headings 9987 & 9988 A discussion on a forum addresses the Goods and Services Tax (GST) rates applicable to job work services effective from October 1, 2019. The original query suggests GST rates of 18% for repairs under Heading 9987, 12% for job work not amounting to manufacture under Heading 9988, and 18% for job work amounting to manufacture. Responses vary, with some agreeing and others suggesting different interpretations, such as applying 18% under a residuary clause for non-manufacturing job work. Participants emphasize the need for official clarification and encourage active contribution to the forum for better knowledge sharing.