GST Rate on Job Worker Charger

[JOHN SHANNEL]

hi, 

What is the GST rate of Job Worker Charges who manufactures shoes for our organisation. we give them raw materials and manufactures shoes for our organisation.

[Sadanand Bulbule]

As per GST law, job work services fall under Heading 9988. The GST rate on job work relating to manufacture of footwear is 12% (6% CGST + 6% SGST), as notified vide Notification No. 11/2017-Central Tax (Rate), as amended.

Therefore, when you send raw materials and the job worker manufactures shoes for you, the job worker is liable to charge 12% GST on his job work charges.

However in GST-02, this gets amended with effect from 22/09/2025.

[Shilpi Jain]

Considering you are registered under GST, job work will be 12% presently.

From 22nd Sep 25 it would become 18% unless it falls under below in which case it will be 5%

Supply of job-work services in relation to Hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975

AI Summary

GST rate change: Job-work services for footwear move from 12% to 18% from 22 September 2025; leather jobs 5% A registered principal who sends raw materials to a job worker for manufacture of shoes is charged GST on the job-worker's service. Presently job-work services for footwear attract 12% GST (6% CGST + 6% SGST). An amendment effective 22 September 2025 increases the rate to 18% in general, but job-work services relating to hides, skins and leather (Chapter 41) will attract 5% instead. The job worker must apply the applicable rate on his job-work charges.