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Clarification on scope of the notification entry at item (id), related to job work, under heading 9988 of Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017-reg.: 

Job work has been defined in the CGST Act as under.

“Job work means any treatment or processing is undertaken by a person on goods belonging to another registered person and the expression ‘job worker’ shall be construed accordingly.

GST Rate on Job work 12  or 18

Services by way of job work other than (i), (ia), (ib) and (ic) above – 12% GST

The above entry covers only job work services as defined in section 2(68) of the Central Goods and Services Tax Act, 2017 (CGST Act)

Hence services by way of treatment or processing undertaken by person on goods belonging to another registered person taxable at 12%

Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (id), (ii), (iia) and (iii) above - 18% GST

Services which are carried out on physical inputs (goods) which are owned by persons other than those registered under the CGST Act.


Job work services to a

a. Registered person (principal) taxable at @12%,
b. Un registered person taxable at @18%


Reference: Circular No. 126/45/2019-GST Dated the 22nd November, 2019


Published by

CA CMA Kesava Sai RajendraKota
(Manager Finance)
Category GST   Report

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