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Taxation of Jobwork under Indian GST Law

GST and taxation on Jobwork

GST and taxation on Jobwork

Goods and Service Tax (GST) upcoming in India is likely to result in widening the tax base substantially by covering large number of potential taxpayers who are  not covered in the tax net. It is estimated that the present assessee base on Central side itself is expected to rise to approximately 60 lacs assessees from existing base of approx. 15 lacs. One of major contributor in this rise would be job workers as it is very rare that all processes of manufacture are carried out under one roof. There is an increasing trend in businesses to focus on their core activity and outsource other activities to specialised service providers

Meaning of job work

Job work is   the processing or working on goods supplied by the principal so as to complete a part or whole of the process. The work may be the initial process, intermediate process, assembly, packing or any other completion process. The goods sent for job work maybe raw material, component parts, semi finished goods and even finished goods. The resultant goods could also be a variation of the same or the complete product.

It is important to note that concepts of ‘service’, ‘manufacture’ and ‘sale’ have their own characteristics, similarities and distinctions. From constitutional and taxation aspects, concepts of ‘manufacture’, ‘sale’ and ‘service’ have deeming characteristics under the respective tax laws.

  • Service is generally regarded as broader in scope than ‘manufacture’ and ‘sale’ as it includes any activity carried out for consideration and is liable for Service Tax
  • Manufacture means only those activities which result into change in the form of commodity and Excise Duty is levied on it
  • Sale means those activities which result into change in the ownership of the commodity and is characterised by levy of VAT or CST.

The impact of GST on Job work transactions can be better understood, only if the existing taxation aspects qua such transactions are first noted. This will enable to understand whether there is any deviation in GST vis-a-vis past laws.

 

Provision under Central Excise and Service Tax

A – Meaning of Job work under Central Excise

Job work is defined in Notification No. 214/86 dated 25.03.1986 and under Rule 2(n) of the Cenvat Credit Rules, 2004 – “Job work” means processing or working upon of raw materials or semi-finished goods supplied to the job worker/ so as to complete a part or whole of the process resulting in the manufacture or finishing of an article or any operation which is essential for the aforesaid process.

*Definition of the term “job work”, makes it evident the raw materials have to be supplied by another person. In Prestige Engineering India Ltd v CCE Meerut, – 1994 (9) TMI 66, the Supreme Court held that when the job worker contributed his own material to the goods supplied by the customer and engaged in manufacturing, the activity was not one of job work.

 

B – Job Work and Manufacture or Service

Since excise duty is on ‘manufacture’, duty liability arises only when the goods are manufactured during job work. The job work operations not amounting to manufacture would be regarded as service.

 

C – Liability under Central Excise and Service Tax

  • Process amount to manufacture: If the process undertaken by the job worker amounts to manufacture/ deemed manufacture as per the definition or decided case laws, the job worker would be liable to pay duty of excise on the goods so manufactured. Alternatively, the principal manufacturer who has supplied the goods for job work may furnish a declaration which exempts goods manufactured by a job worker. The goods must be used in manufacturing process by principal manufacturer which should result in a dutiable product being manufactured on which duty of excise is being charged. The activity undertaken by job worker would not be liable to service tax also as any process amounting to manufacture or production of goods is covered by Negative list.
  • Process does not amount to manufacture: Where the processing undertaken by the job worker does not amount to manufacture, the said job worker could be liable to service tax. Refer –  Mega Exemption Notification. As per the said Notification, job work in relation of any goods on which appropriate duty is payable by the principal manufacturer.

 

D – Valuation

Excise Duty

It was held by Supreme Court that in respect of goods manufactured on job-work basis, assessable value would be the job charges (including the profit of the job-worker if not already included in the job-charges) plus the cost of the materials used in the manufacture of the item (including the cost of the materials supplied free of cost to the job-worker).

Rule 10A had been introduced in Central Excise Valuation (Determination of Price of Excisable goods) Rule 2000, in respect of the goods produced or manufactured by Job Worker which provides for valuation as follows:

  • Goods directly sold from job worker premise:Where the goods are sold by the raw material supplier/principal manufacturer from the factory of job worker – the value would have to be the transaction value of the goods so sold by the raw material supplier/principal. This will apply only when the raw material supplier and the buyer of the goods are not related and price is the sole consideration for the sale and the goods are sold for delivery at the time of removal from the job worker’s factory.

Illustration: Let the value of raw materials supplied by principal be Rs. 1,00,000 and the job workers conversion cost be Rs. 15,000 and his profit margin be Rs. 5,000. If the principal sells the goods processed by the job worker at Rs. 1,50,000. Then assessable value would be Rs. 1,50,000 (that is the price charged by the principal for sale of the processed goods).

  • Goods not sold from job worker premise: In a case where the goods are not sold by the principal manufacturer at the time of removal of goods from the factory of job-worker, but are transferred to some other place from where the said goods are to be sold after their clearance from the factory of the job worker – the normal transaction value of such goods sold from such other place at or about the same time has to be adopted. This, in other words follows the principle of depot based valuation under Central Excise applicable where goods are cleared to depots of manufacturers and sold therefrom. Where such goods are not sold at or about the same time, then the normal transaction value of such goods at the time nearest to the time of removal of said goods from the factory of job worker is to be adopted.  The cost of transport from the premises where from the goods are sold, to the place of delivery, would not be included in assessable value.

Service Tax

Service tax would be on gross amount charged towards labour charges. Where the nature of work undertaken is works contract, value would be arrived at as per options provided under Rule 2A of Service Tax (Determination of Value) Rules, 2006.

 

Provisions under CST/ VAT

The levy of Sales Tax/VAT is on ‘sale’ of goods. Hence job work transactions involving pure labour would not attract levy of sales tax/VAT. When materials are supplied by principal manufacturer to job worker for the purposes of job-work, there is no sale of such goods and consequently, levy of sales tax is not attracted. In case of inter-state transfers, principal manufacturer is required to follow certain procedures for the purpose of declaring such transfers as “otherwise than for sale”. Similarly, when job-worker returns the goods to principal manufacturer, after the job work is complete, he is not liable for payment of VAT/sales tax, since such transfers would not be regarded as sale. However, if the job-work results in transfer of material from job-worker to principal manufacturer, value of material so transferred attracts VAT. Every State has its own valuation rules for determining the value of material so transferred in the course of job-work processing.

When the job worker uses materials there would be a transfer of property in goods involved and the transaction would be taxable. The taxability would depend upon the following:

  1. Material Billed separately: This would be a divisible contract in which job worker would charge the applicable VAT/CST on the materials transferred by him. He would also bill pure labour charges. In such cases the work order, purchase order or contract should be clear on the values ascribed towards the material and labour. It is advisable to keep the valuation of each of the components in such bifurcated contract near to the reality.
  2. Composite Billing: In this case the value of material would be included in the total amount. This is called works contract. The material portion would be liable to CST. The various State governments have specified some deemed deduction for labour where the works contract or cannot arrive at the actual value of goods. Eg: annual maintenance contracts.

Similarly, there could be contracts such as painting of portrait etc. in which some consumables are used. In these cases though there is a material transfer, the activity has been understood clearly to be service by the Court’s by applying dominant motive test and consequently there is no liability to charge CST.

 

Applicability of GST on job work

The taxable events under present laws are manufacture (Central Excise), provision of service (Service Tax) and sale (CST/VAT) respectively for applicability of different kind of taxes. Under proposed GST regime, all these concepts would lose relevance and the taxable event would only be “supply of goods” and “supply of services”.

Under the model GST Law, concept of supply is explained in Section 3. It includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal. Ordinarily, ‘supply’ shall become subject matter of levy only when (i) such supply is of goods and/ or services and (ii) is made or agreed to be made in the course of or furtherance of business and (iii) is made for a consideration. However, as per section 3 read with Sr.No.5 of Schedule I, any supply of goods and/or services by a taxable person to another taxable or non-taxable person in the course of or furtherance of business would be regarded as ‘supply’ even if such supply is without any consideration. The supply of goods by a registered taxable person to a job-worker in terms of Section 43A of the Model GST Act is carved out as an exception from Sr.No.5. Section 43A, inter alia, provides a special procedure for removal of goods involved in job-work transactions, without payment of duty. The benefit of section 43A can be granted by the Commissioner only by a special order. Hence, it would be interesting to see whether such special order would be a blanket permission, specifying certain conditions and procedure, upon fulfillment of which all the taxable person are automatically entitled to benefit of section 43A, or this order shall be issued qua every taxable person separately.

There are no specific valuation provisions governing the valuation of Job-work under model GST law. “Job-work” is defined in section 2(62) to mean undertaking any treatment or process by a person on goods belonging to another registered person. Under Schedule–II, any treatment or process which is being applied to another person’s goods is regarded as a supply of service. Further, ‘works contract’ including transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract is also regarded as service. Therefore, it appears that, under GST, for taxation purposes, job-work operations will be regarded as ‘supply of service’, even if they involve transfer of property in goods.

Another significant aspect that may be relevant in determining the valuation is that, in Job work transaction, there will be minimum two supplies from Job-worker to the principal namely (i) supply of services for consideration which will be in the nature of job-work charges and (ii) supply of processed goods for which there will be no consideration (since this would be only return of goods back to the principal).

This can be explained by way of an example:

Jobwork in GST Example

Party ‘A’ – Principal sent goods of Rs.1,00,000 to party ‘B’ – Job Worker for Job-work. ‘B’  did the Job-work operation on the goods received from ‘A’ and charged Rs.20,000 as his job-work charges. In the said amount of Rs.20,000 there is also included use of material amounting to Rs.5,000 procured by the job-worker and used in the job-work operation. Thereafter he transported goods back to ‘A’ at another place of business.

In this example, there are various supplies as under:

  • Supply of raw goods from ‘A’ to ‘B’
  • Supply of service from ‘B’ to ‘A’ – ‘Job work’ and/ or ‘Transportation’
  • Supply of processed goods from ‘B’ to ‘A’

Assuming that transaction is covered within section 43A, there will be no liability to pay taxes for supply of raw material from ‘A’ to ‘B’ and supply of processed goods from ‘B’ to ‘A’. However, supply of service i.e. job-work would attract tax. This appears to be a diversion from current service tax and excise provisions, where job-workers are exempted from Central excise duty as well as Service tax on their job-work charges, if the principal manufacturer pays duty on final product.

The next question is – what would be the value of service for the purpose of levy of tax? As per section 15, the value of supply of goods and/or services shall be the transaction value. “Transaction value” would mean the price actually paid or payable for the said supply services where the supplier and the recipient of supply are not related and the price is the sole consideration for the supply. Hence, in the present case Rs.20,000 would be treated as the value of service although, it includes materials worth Rs.5,000, still the entire supply including value of material would be treated as services.

 

Transaction  no.Is Supply ?GST Payable
Transaction 1YesYes
Transaction 1No – if approved u/s 43ANo
 
Transaction 2Yes (irrespective of 43 A)Yes
 
Transaction 3YesYes
Transaction 3No – if approved u/s 43ANo

 

The other provisions contained in Rule 15 which are also to be taken into account for the purpose of Valuation of Job-work Transactions are as under:

  • Royalties and license fees related to the supply of services (i.e. job–work operations) that, the recipient of supply must pay, either directly or indirectly, as a condition of the said supply is also to be included in transaction value, to the extent that such royalties and fees are not included in the price. Therefore, if ‘A’ paid certain technology transfer fees to ‘C’, so that ‘B’ can use the said technology in the job-work operation that he is performing for ‘A’, the value of such technology transfer fee may also be included in transaction value of job-work services, unless B is in a position to prove that, the impact of such technology transfer fees has already been considered in Rs20,000.
  • Further, any reimbursable expense or cost incurred by or on behalf of the supplier and charged in relation to supply of services would also form a part of transaction value of service. Therefore, for the purpose of job-work, if any material is procured by ‘A’ on behalf of ‘B’, cost of which is recovered separately from ‘B’ , then such cost may also be included in the value of service, unless B is in a position to prove that, the impact of cost of such materials has already been considered in Rs20,000.
  • No deduction from transaction value is allowed for any incentive/discount given by ‘B’ to ‘A’ after the supply has been effected, unless such discount is offered under the established agreement and is known before or at the time of supply and can be traced qua invoice raised for particular supply. Similarly, any discount given prior to supply shall not qualify for deduction from value, unless, such discount is allowed in the normal trade practice and has been duly recorded in invoice.

To conclude, the study of implications under GST law on the aspects related to valuation of job-work transactions is very crucial having regard to various issues raised above and wherever there is a scope for ambiguous situation, necessary clarification is required in the GST Act, in order to save the job work industry from possibility of litigation in future.

Need help with GST registration ? Our experts can prepare and file your GST registration application.

133 Comments

  1. Karan Chauhan says:

    Sir,
    We are in Textile Industry We are sending goods for jobwork and we received it back with in time specified by law
    So, What Liability we have and How much tax liability on us ?

  2. Anonymous says:

    Sir i am into computer sales & service business from last 15 years before gst i was having vat no my sales was above 20 lakhs per year but my services bill were below 10 lakhs so i was not under service tax
    .sir i had annual maintenance contract of computers with semi govt firm(without service tax) from feb 2017 which ended in august 2017 now i have given them bill of amc with 18 % gst which they are not giving they are asking for section/rule under which they can change old purchase order & allow gst in my bill

  3. j p malpani says:

    we r having a corrugated plant makings cartoon boxes now we are getting a jobber work from a party materials (paper) to make a cartoons under job .
    kindly reply that what formalities in gst portal to amendments or added regarding job work also pl tell us the % on job

  4. Amith says:

    Sir actually my company has taken contract to prepare bags , safety shoe and uniforms from different contractors.And after all these items are delivered to company my company send it to their employees in various states.Does it require a bill if the company deliveres the material by road to different states ..??

  5. Anonymous says:

    what is the rate of GST on jobwork of PVC Coated Fabrics?

  6. Anonymous says:

    Dear Sir I am a Offset Printer we have printing machine and i am done job work and supply of Printing Itms kindly tell me the we r charged % of GST as job work or Supply?

  7. Dhiraj M Patil says:

    Sir, we are taking raw material haldi from salem and our firm is registered at kolhapur, Maharashtra. This material we have to process at Mysore further. So how we can send material without any problems for taxation. As material entering in karnataka needs to fill e-Sagum. can we send material directly to mysore from salem? Please advise on how to do such transaction.
    Thank you

  8. Anonymous says:

    i am doing job work (PADDY TO RICE ) what rate % of gst and what is HSN/ CAS code.

  9. Siddhartha Paul (Kolkata) says:

    Please anyone tell me the HSN/SAC code of job work for the making of HOSIERY ITEMS……
    Also tell me the % on the job work….

  10. MALLIKA says:

    sIR, pLASTIC INJECTION MOULDING MACHINE MANUFACTURE , OUR JOB WORK SENT TURNING, MILLING UNREGISTER PARTY, HOW BILL CLAIM IN OUR ACCOUNT (PARTY PAYMENT THRO CHEQUE) PL CLEAR CLARIFICATION

  11. Manish B. Gupta says:

    Sir We are register dealer in GST From Maharashtra State,
    We have received material from Gujrat for job work and after completing the job work
    party wants delivery of material from my factory (maharashtra)
    Pl. guide which type of GST We will charge to them
    SGST and CGST or IGST ???

  12. Anonymous says:

    SIR I AM DOING ROPES AND SAFETY HARNESS LABOUR CHARGES PLEASE SUGGEST GST ON LABOUR CHARGES

  13. Vinayak says:

    Sir I am doing chemical job work please suggest GST on chemical job work

  14. Vijay Srivastava, NOIDA says:

    HSN/SAC CODE FOR JOB WORKING THROUGH CNC MACHINE ON SEMI FINISHED OR FINISHED DIE FOR VARIOUS ITEMS

  15. Anonymous says:

    how much tax we collect for job work of leather finishing work

  16. Paul says:

    Sir I am doing job work in Electric Spot Welding in Imitation Jewelry. Principal provides me Pins and Buckle , i m using some material purchase by me and then return semi product goods to Principles.
    Sir so I need to register under GST and what is the rate under GST? and SAC code for the same? .
    and can I take Input Tax Credit on material purchase by me.?

  17. Anonymous says:

    i am doing job work (s teaching of toy ) what rate % of gst

  18. Ketan Parmar says:

    If i sent engineering goods to a jobworker who is unregistered who will be liable to pay the gst and how ??

  19. Ketan Parmar says:

    Sir we are a registered jobworker for machining on CNC receiving material for jobwork from principal -company we further send this material to our jobworker who is (unregistered) as his threshold limit is below 20 lakhs annually so he supplies us the bill of pure labour charges i want to know that who is liable to pay the gst for jobwork done from unregistered jobworker

  20. Vijay Srivastava, NOIDA says:

    Hi, what will be the GST Rate applicable for Job work on Tooling through CNC Machine. What is HSN/SAC Code for the same.

  21. Mukeshbhai says:

    We are having power loom and doing job work by receiving textile yarn from principal for making textile fabrics. What is the rate of GST applicable on job charges on making textile fabrics, 5% or 18% ?

  22. Lalit says:

    We are Electrical labour contractors (only labour no supply ) having office in delhi & Carry work in other states like Bangalore & chennai. We used to pay service tax in Delhi for work in Other state. Do we have to now get registered in all the states? or we can have registration in Delhi & work in other state? We donot have any branches. Pl advice.

  23. Rupali Dixit says:

    WE are manufacturer of graphite equipments & offload our steel part work to another parties which is not registered under GST. In this case what % we will charge for our Reverse Charge Invoice & what is the HSN Code for steel flanges or steel material bending work.

  24. Srinivas Desai, says:

    We are sending steel rounds and other items to the local registered job worker for job work like; turning, machining, etc., and he is charging GST @18% on the job work. Whether this GST paid to them can be taken credit of CGST/SGST

  25. Tapas Ghosh says:

    Principal required to pay GST on unregistered job workers bill. Is he get tax credit on reverse charge basis?

  26. Anonymous says:

    what documents needed to send material to job worker (registered) for one process and furthur transfer of material to another jobworker (uNregistered) and again to a third and fourth process…
    please clarify the documents needed
    thanks

  27. Arvind Thakur says:

    What will be the GST tax on Fabrication Job work ???

  28. Arvind Thakur says:

    What will be the GST Tax on Fabrication Job work With and without material..????

  29. Anonymous says:

    I am a job worker in one machine manufacturing , company use to provide me raw material which is either raw or semi finish , I use to welding, cutting, fabrication, drilling , threading, and assemble it in co premises only with all other materials which belongs to co, after my work machine is ready by mechanically but not ready for dispatch , after that co workers do painting, pipelines, wiring and plc works, after all this works machine is ready for dispatch, I am giving totally labour Bill to co,

    kindly guide me what may be G S T roll in my business and its hsn no pl

  30. Uday kumar Purohit says:

    what is HSN CODE for plastic job work by injection moulding???

  31. VIKASH GUPTA says:

    We are doing job work. Our client give us plastic granules and we made them plastic bag by machine in which we do not add any material.so we can need gst registration. If yes than what is the gst rate.

    • gstsamadhaan says:

      GST registration depends on turnover. If you exceed the threshold 20 lakhs (or 10 for some states) you need registration. Rate is 18%.

  32. Lakshay says:

    We’ve a finished leather factory. Mostly, we do leather job work (semi-finished to finished).

    Now there are 2 cases:

    1. When we use our own chemicals for processing
    2. When our parties send their own chemicals for processing

    As per the guidelines to our knowledge, Leather job work GST rate is 5%. We want to confirm: if we use our own chemicals for processing, will the GST rate be 18%? (because in a way it seems to be a chemical supply also).

    If our parties are sending their own chemicals, it’ll be a pure job work (for which 5% rate is okay) but if chemicals are ours, it isn’t pure job work.

    We’ve not been able to raise invoices this month due to this confusion. Your answer to this query will be of immense help.

  33. PANKAJ says:

    SIR
    I AM RUNNING GOLD DIE CUTTING BUSINESS IN DELHI .WE BUY DIE FROM RAJKOT AND DO LABOUR JOB WORK BY CUTTING DIFFERENT DESIGNS IN GOLD METAL AND GIVE METAL BACK TO CUSTOMER. What will be the rate of GST on such Jobwork ?

  34. Rajesh says:

    We are Exporters of Readymade Garments. We used to buy fabric and on which we used to do Difeerenct process like Stictching / Embroidery and Printing . What will be the rate of GST on such Jobwork ? And what kind of Documents we have to Keep with us / Most of our Job Workers are Unregieterd ?

  35. Rajesh says:

    We are Exporters . We buy cloths and Send fro Jobwrok like Stitching Embroidery and Printing etc. What rate will be applicable for GST on That Job work , We used to do differenct process fpr Same material .If Jobworker is not Registered , what rate we should pay GST on His Bill ? and What Documents we have to keep as record ?

  36. ram says:

    Dear Sir,
    we are manufacturer of injection moulding dies, we send to job work to another gst registered job worker for lathe work, the job worker raise invoice to us job work cost and gst 18%, so tds is applicable or not.

  37. Anonymous says:

    sir in hotel industry,provide me tax of duty on room(<rs1000) and non ac hall . whether i have toprepare single bill for both

  38. Anonymous says:

    sir we do manufacturing plus job work, manufacturer of iron gate, grill, staircase , cendelliars and do job work like cnc cutting, my question is whether i have to prepare seprate tax invoice charging gst on goods and gst on services, and plz provide rate of duty to be charged in repaect of job work and manufacturing, sir plz reply soon

  39. Vasudeva says:

    Sir while sending input material for job worker and receiving back from job worker after the processing can we put same SAC code 998860 . Please confirm .

  40. anmol says:

    please tell me jobwork on dies made under 15 lakhs annual can gst no require or not if yes whats percent tax & how

  41. VIPUL G KAROTRA says:

    if i make shirt and for stitching job worker is 18 % applicable..when i sell the shirt gst tax applicable is 5 % … so remaining 13% sanvat how can we take.?

  42. ARIF MEMON says:

    JOB WORK OF TAILORING PURCHASE OF RAW MATERIAL i.e 5% GST AND THEN WE TAKE ORDERS FROM CORPORATE AND HOTEL INDUSTRY, FOR THEIR REQURIMENTS SHIRTS TROUSER AND SUITS WHICH W E STICH AND SUPPLY SO PLEASE SUGGEST ME THE % OF GST ONTHE TAX INVOICE SHOULD BE, KINDLY SIR PLEASE REPLY MY QUERY

  43. Akanksha says:

    We are a manufacturing company who gets the raw material and fabricates the equipments which are then provided to the customer. In this case, the gst applied on the raw material and the labour is 28% & 18%, respectively- For creating an invoice, do they both come under in the same invoice or seperate invoices need to be created for each?

  44. Annada says:

    Dear All,
    Can you suggest regarding below subject

    I am a manufacturer. My customer is send one part for assembling the product.
    How I should threat customer supplied material in books of accounts and Can i inward against Delivery challan ,E-sugam or E way bill is required or not to inward .

  45. AMIT says:

    FROM WHERE I CAN ET THE FORMAT OF DOCUMENT FOR SENDING THE GOODS FOR JOB WORK AND SENDING GOODS AFTER JOB WORK?

  46. AMIT says:

    Sir from where i can get the GST Format for goods sending for jobwork and goods sending after jobwork. pls reply

  47. Imran A. Khan says:

    GST tax bracket on fabrication for leather exporters?

    • Manish Jain says:

      18% which I assume is absurd and too high.

    • gstsamadhaan says:

      Fabrication FOR leather exporters is ambiguous. Fabrication OF leather products or any other ? It may be 5% or 18% . Ask your question more clearly.

      • Imran A. Khan says:

        Sir GST tax bracket for fabrication on leather goods (bags, wallets etc) and leather gloves etc?

        Under the GST law, notification no. 8/2017 dated 28th June 2017 has been issued which specifies GST rate for Manufacturing services on physical inputs owned by others (Heading 9988). It specifies 5% GST rate on Services by way of job work in relation to Processing of hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975.

        It has also been specified that GST rate Manufacturing services on physical inputs (goods) owned by others, other than above shall be 18%

        Our members are not clear as to whether the services provided by job workers in relation to processes on leather such as cutting or stiching/fabrication will fall under 5% rate or 18% rate. Please advice.

        Thanks & Kind regards

        • gstsamadhaan says:

          Rate will be 5% as it seems you are referring to goods of leather further prepared.

          All goods, that is leather further prepared, etc. [4107 to 4115]
          1. 4107 Leather further prepared after tanning or crusting, including parchment-dressed leather, of bovine (including buffalo) or equine animals,without hair on,
          whether or not split,other than leather of heading 4114.

  48. mahesh salunke says:

    very good and perfect clarification,thanks.
    18% GST is clear .ITC can be taken even input material is of 28%.
    Finally
    what is HSN or SAC code.
    This will make your topic with 100% information.

  49. satish says:

    if we have got old stock as on 30th june2017 from principal & want to return same after job work in July, will GST be applicable on same or not?

  50. Sudhir Nayyar says:

    We are job worker of processing of leather with material used .kindly tell me what gst charged on job work should we charged

  51. Anonymous says:

    We do engineering job work….the principle send us row martial like stainless still round bars …we process on it like turning, grinding on this bars only pure labour charges and send back to principle (Previously Principle was in excises so no service tax is applicable). Does it now attract GST only on pure labour charges. If applicable how much GST on this type of labour charges and how can i get ITC ???

  52. Anonymous says:

    sir what is the rate of GST of labour charges on Agriculture machinery

    • gstsamadhaan says:

      GST rate on jobwork services is 18%. It is immaterial if it is for agriculture machinery. Same machinery can be used in agriculture and other uses as well.

  53. Anonymous says:

    what is the rate of tax in job work for garments

    • gstsamadhaan says:

      Textile job works such as cutting, embroidery, finishing, washing or pressing, packing, bleaching, dyeing, printing, knitting, and colouring has been brought under the 5% GST slab.

      Garmenting will continue to be under 18%.

  54. Tanmoy says:

    Security Guard and Manpower supplier.. Used to pay service tax 15%. What is the rate Now? 18%

  55. Kiran says:

    What will be the rate of Tax on Motar Vehicle Parts Job work?? It Includes Material also… Kindly Suggest Us

  56. Anonymous says:

    We are job worker. We receives cloth from dealer & stiches it. After stitching shirt is delivered to dealer. We charges labour @ Rs. 20 per piece for the same.
    Is I am exempt from GST ? If comes under GST what will be the rate ?

    • gstsamadhaan says:

      Textile job works such as cutting, embroidery, finishing, washing or pressing, packing, bleaching, dyeing, printing, knitting, and colouring has been brought under the 5% GST slab.

      Stitching will be under 18%.

  57. Anil Nayak says:

    If I undertaken pure labour work for installation of toughened glass supplied by the principal,where in the GST is 28%, what rate should I charge on my labour 18% or 28% ?

  58. Ramlal Savale says:

    WILL SALE INVOICE AND SERVICES INVOICE BE IN SAME SERIES OR IT WILL BE SAPERATE ?????????????

  59. Ramlal Savale says:

    What will be the rate of Tax on Painting Jobwork in GST

  60. Anonymous says:

    What will be the rate of Tax on Printing & Packaging Jobwork in GST

  61. Anonymous says:

    SIR,

    LET WE KNOW, WILL SALE INVOICE AND JOB WORK INVOICE BE IN SAME SERIES OR IT WILL BE SAPRATE ?????????????

  62. Anonymous says:

    we are doing job work to Reputed tyre manufacturer who is in Nasik and we are clearing the material on payment of duty (duty will be reimbursed by tyre industry) and also we raising conversion bill as per agreed rate. Now my question is now onwards whether i have to charge GST on conversion bill ?

  63. Anonymous says:

    What will formate for returning processed materials from job worker to principal , and also formate for invoices raising jobwork charges. Please inform. Thanks. UMESH SHRIVASTAVA.

  64. Anup says:

    Sir,
    We are Electrical Labour Contractor, worked in Multi-state with office at Mumbai for Electrical Projects.
    We used to pay Service Tax from Mumbai. In GST do we need to registered for different state? Our Establishment in diff states are temperory & project related.

    AYG

  65. Anonymous says:

    We are Electrical labour contractors (only labour no supply ) having office in Mumbai & Carry work in other states like Goa & Gujarat. We used to pay service tax in mumbai for work in Other state. Do we have to now get registered in all the states? or we can have registration in Mumbai & work in other state? We donot have any branches. Pl advice.

  66. Anonymous says:

    We are doing since 15 year jobwork (digitization jobwork) what would be tax rate

  67. ACME INDUSTRIES says:

    What would be the GST tax rate if i am selling my old machine to another entity with in state.

  68. Anonymous says:

    if we send cutting facbricis of shirts to stitching (job work), how much GST on stitching job work.

  69. Akshay Patra says:

    Sir,
    Which Notification No. We are Used For Prepare Service Invoice for Job Work to make Stainless Steel C.R. Coil to Our Finished goods (Stainless Steel Pipes & Tubes) under GST Rule.
    Please Kindly Reply Sir.

  70. RUPESH MISHRA says:

    if we have send RAW MATERIAL FOR JOB WORK FOR PLASTIC MOULDING PRODUCT THEN WHICH RATES CHARGES IN GST.

  71. Priyanka Bnagalore says:

    sir,
    What GST rate will be applicable for Jobwork in textile industry .

    Kindly Reply

    • Anonymous says:

      I AM UNIFORM SUPPLIERS TO CORPORATE AND HOTEL INDUSTRY, I PURCHASE, RAW MATERIAL (CLOTH) THE GST IS 5% ON IT AND NOW I STITCH AND SUPPLY SO WHAT RATE OF GST IS APPLICABLE WHEN I ISSUE TAX INVOICE PLEASE KINDLY REPLY

  72. Anonymous says:

    will you please mention the job work charge for gold jewelery making ornaments i have partnership firm and if i send my gold for making of new ornaments to my karigar then what will be the gst rate?

    second in my partnership firm i am paying all bill amount in cheque including tea and coffee refreshment charges too so in these types of small office payment like stationery, printing and all other miscellaneous payment what will the method?

    • gstsamadhaan says:

      Dear Sir,

      Jobwork tax rate for jewellery is 5%.
      Other office expenses- GST has to be paid on reverse charge basis at the applicable rate (assuming your supplier is unregistered)

      Please email your contact details to support@gstsamadhaan.com to schedule a consultation with an expert.

      Regards
      GST Samadhaan Team

  73. Manish Surve says:

    Hello Sir,

    I am running my Small printing press as a Labor contractor (Individual Propritorship). I done job work of principle suppliers/ Parties on behalf of them(Job Order). so GST Applicable to us or me?? and what GST Rate will be applicable?? Please guide me.

    Manish Surve
    Mumbai.

  74. D K Salunkhe says:

    Dear Sir,
    Can Job worker avail ITC ? Also job worker will face problem of working capital – as he has to pay GST & wait for 2/3
    months to get his payments ? where as Principal can enjoy ITC immediate ? How will job workers will survive ?
    Why not exemption as per previous service tax rule? As Government will be in loss as they are not getting any benefit as principal is getting ITC ? Unnecessary small job workers will be in trouble ? Regd D K Salunkhe (9822402717)
    Salunkhe.deck@gmail.com

    • gstsamadhaan says:

      Jobworker can avail ITC on any inputs used in providing the jobwork services.

      • malcolm says:

        hi can you help me determine the gst slab for labour jobs for offset printing press
        where duplex paper is supplied by our client and we do printing on it for which we buy ink n chemicals and print n return the material to the client and charge him for our job work undertaken
        what will now be the gst charges for the same

  75. santosh pathak says:

    What will be the rate of tax on pure labour supply work in GST.

    • gstsamadhaan says:

      It will be 18%, unless it is for specified sectors, mainly textile, leather or jewelry making industries.

  76. PiyushGoel says:

    What will be the rate of Tax on Painting Jobwork in GST

  77. PiyushGoel says:

    what will be rate of tax in Painting Job Work in GST With or Without Matterial

  78. Anonymous says:

    If We send material for job work who dose not have GST no. what will hapend to it

  79. Amit Gupta says:

    Thanks for the info.

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