TaxTMI 
TaxTMI 
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?
GST Rate for Job Work
08 Feb 2022 
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Job work classification governs GST treatment; outsourced manufacturing services on inputs owned by others attract concessional tax under HSN 9988.
Where a registered principal supplies inputs to a registered job-worker for assembly, the applicable rate depends on classification: services characterized as Manufacturing services on physical inputs owned by others (HSN 9988) are treated as outsourced manufacturing and, per explanatory notes and relevant circulars and advance rulings, attract the concessional rate based on the service fee. Distinct entries exclude certain job-work or repair activities, so non-job-work or repair services may fall outside that concessional entry and attract a different rate. (AI Summary)
Where a registered principal supplies inputs to a registered job-worker for assembly, the applicable rate depends on classification: services characterized as Manufacturing services on physical inputs owned by others (HSN 9988) are treated as outsourced manufacturing and, per explanatory notes and relevant circulars and advance rulings, attract the concessional rate based on the service fee. Distinct entries exclude certain job-work or repair activities, so non-job-work or repair services may fall outside that concessional entry and attract a different rate. (AI Summary)