GST Rate on Job Worker Charger
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.
Job-work on supplied raw materials for shoe manufacturing is taxable as GST supply of services, commonly at 18% Job-work charges for manufacturing shoes, where the principal supplies raw materials, are treated as a taxable supply of services under GST; the applicable rate depends on the service classification and tariff heading but is commonly charged at 18%. The principal (or job worker, if registered) may claim or discharge tax as per place of supply and invoicing rules; input tax credit is available to the principal subject to normal ITC conditions. Confirm the exact rate by referencing the GST tariff for footwear-related job-work services or seek a ruling for the specific facts. (AI Summary)
Goods and Services Tax - GST