QUESTION

PLEASE PROVIDE LATEST NOTIFICATION ON JOB WORK RATE REDUCE TO 12%

ANSWER
Notification No. 11/2017 Central tax (Rate) as amended vide Notification No. 20/2019 Central tax (Rate) regarding change in job work charges is as follows:

26. Heading 9988 (Manufacturing services on physical inputs (goods) owned by others)    

(i) Services by way of job work in relation to-

    (a) Printing of newspapers;

    (b) Textiles and textile products falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975)

     (c) all products other than diamonds falling under Chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975)

    (d) Printing of books (including Braille books), journals and periodicals;

    (da) printing of all goods falling under Chapter 48 or 49, which attract CGST @ 2.5per cent. or Nil;

    (e) Processing of hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975).

    (ea) manufacture of leather goods or foot wear falling under Chapter 42 or 64 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) respectively

    (f) all food and food products falling under Chapters 1 to 22 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975);

    (g) all products falling under Chapter 23 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975), except dog and cat food put up for retail sale     falling under tariff item 23091000 of the said Chapter;

    (h) manufacture of clay bricks falling under tariff item 69010010 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975);]

    (i) manufacture of handicraft goods

Explanation. -The expression 'handicraft goods' shall have the same meaning as assigned to it in the notification No. 32/2017 -Central Tax, dated the 15th September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1158 (E), dated the15th September, 2017 as amended from time to time		 2.5 -

(ia) Services by way of job work in relation to-
     (a)   manufacture of umbrella;
    (b)  printing of all goods falling under Chapter 48 or 49, which attract CGST @ 6 per cent.

6

 

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(ib) Services by way of job work in relation to diamonds falling under chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); 0.75 -
(ic) Services by way of job work in relation to bus body building; 9 -
(id) Services by way of job work other than (i), (ia), (ib) and (ic) above; 6 -

(ii) Services by way of any treatment or process on goods belonging to another person, in relation to -  
    (a) printing of newspapers; 
    (b) printing of books (including Braille books), journals and periodicals.
    (c) printing of all goods falling under Chapter 48 or 49, which attract CGST @ 2.5 per cent. or Nil

2.5

 

 -
(iia) Services by way of any treatment or process on goods belonging to another person, in relation to printing of all goods falling under Chapter 48 or 49, which attract CGST @ 6 per cent. 6 -
(iii) Tailoring services. 2.5 -
(iv) Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia),(ib), (ic), (id), (ii), (iia) and (iii) above.

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Please be noted that Entry No. 26(iv) which was relating to manufacturing services on physical inputs provided by others is not changed. As a result, now there are 2 entries:
1. Relating to Job Work as given in Entry No. 26(id) attracting tax @ 12%.
2. Entry No. (iv) relating to manufacturing service which attract rate of tax @ 18%.
For Full text of Notification you may refer E-Book through following route.:
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