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 on job work services for footwear set to change unless leather based inputs qualify for a lower rate.
Job work services where raw materials are supplied and a job worker manufactures footwear are taxable and the job worker must charge GST at the currently notified rate for footwear job work; a forthcoming amendment revises the general rate, while job work connected to hides, skins and leather under Chapter 41 is subject to a lower notified rate and remains an exception.