Job work GST rate

[KARAN VERMA]

Sir, i have engaged contractor for dismantling of machine i.e balancing of machine in paper industry. My question is which GST rate contractor has to charge 12% or 18%.

[Atul Rathod]

If it’s manufacturing service-12% else 18% assuming job work is done for registered person

[KASTURI SETHI]

For the activity mentioned rate of GST is 18%. Here is no question of 'manufacturing activity'.

AI Summary

Job work GST rate guidance: balancing or dismantling of machines treated as taxable at higher rate unless manufacturing service. The issue is whether GST on contractor work for dismantling and balancing a paper industry machine is charged at the lower manufacturing service rate or the higher general rate. One reply states that if the job work qualifies as a manufacturing service the lower rate applies, otherwise the higher rate applies (assuming supply to a registered person). Another reply treats the described mechanical activity as not manufacturing and thus subject to the higher general GST rate.