GST@ 12% ON JOBWORK AGAINST 20/2019- Central Tax (Rate)

[RSundaram RAMASAMY]

Dear All,

We are doing job work activities to aviation customers for the Mfr of Rubber product & Metal Product. Now we charged GST @ 18%. and Using SAC Code 9988 [ (ii) Manufacturing services on physical inputs (goods) owned by others, other than (i) above.]

As per Not.No. 20/2019- Central Tax (Rate), GST rate will be change @ 12%.

Kindly suggest us, can we implement GST @ 12 % for further job work activities for rubber product and metal product ?

Thanks

AI Summary

GST Rate on Job Work: 12% for Non-Manufacturing Services, 18% for Manufacturing; Clarification Needed per Notification 20/2019 A discussion on a forum addresses the Goods and Services Tax (GST) rate applicable to job work activities, specifically in manufacturing rubber and metal products. The original query questions whether the GST rate can be reduced from 18% to 12% based on Notification No. 20/2019-Central Tax (Rate). Replies indicate that if the job work is for a registered person and does not result in a manufactured product, the GST rate is 12%. However, if the process results in a new product, the rate remains 18%. The discussion also touches on the definitions of job work and manufacturing, with references to relevant circulars and legal interpretations. The consensus suggests that job work for registered customers should be taxed at 12%, while further clarification from authorities is needed due to ambiguities in definitions.