GST Rate for Job Work

[Kaustubh Karandikar]

XYZ doing the PCB Assembly job work where the PQR is sending XYZ the raw material (Electronic components, bare PCB and all) in kit format. XYZ are doing assembly and soldering and sending it back to PQR. Both XYZ and PQR are registered with GST. What is the GST Rate that XYZ should charge to PQR for this job work?

AI Summary

Debate on GST Rate for PCB Assembly Job Work: 12% Under HSN 9988 Unless Resulting in New Product at 18%. In a discussion forum about the GST rate applicable to job work, participants debated whether XYZ, a company performing PCB assembly for PQR using materials provided by PQR, should charge 12% or 18% GST. The consensus was that the applicable rate is 12% for job work services under HSN 9988, as the process does not constitute manufacturing. However, if the process results in a new product, the rate could be 18%. Different interpretations of GST rules and related case law were discussed, highlighting the complexity and varying opinions on the classification of manufacturing services versus job work.