Gst rate on job work services
Background:
Entry at item (id) had been inserted in Services Rate Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017 (“Services Rate Notification”) under heading 9988 w.e.f October 1, 2019 to implement the recommendation of the GST Council to reduce rate of GST on all job work services, which earlier attracted 18% rate, to 12% for all services by way of job work.
Relevant entry at item (id) under S.No. 26 of the Services Rate Notification reads as under:
“Services by way of job work other than (i), (ia), (ib) and (ic) above;”
However, this raised doubts regarding the scope of the above entry and it was being doubted that this makes the entry at item (iv) which covers “manufacturing services on physical inputs owned by others” with a GST rate of 18%, redundant.
Relevant entry at item (iv) under S.No. 26 of the Services Rate Notification reads as under:
“Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia),(ib), (ic), (id), (ii), (iia) and (iii) above.”
Clarification about Gst rate on job work services:
Hence, the CBIC vide Circular No. 126/45/2019 – GST dated November 22, 2019 (“the Circular”) has clarified as under –
Get full text of circular of GST rate on job work services:
