GST RATE FOR HSN CODE 998898 w e from 01.10.2019

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For job work services under HSN 9988 where inputs are owned by others, GST rate is 12% as per Notification 20/2019. Though 18% exists for certain manufacturing services, job work on customer-owned inputs is taxed at 12% under GST rules.

MAHESHA R

MAHESHA R (Querist)
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16 November 2019 Dear Expert

As per Notification No:20/2019 dt:30.09.19 GST rate has been reduced from 18 to 12.

We are Register manufacturer and sending Job work to other Register Job Worker for doing Job Work.

Kindly advise in CBIC site they have mentioned both 12% and 18% rate as per below

HSN SERVICE CATAGORY RATE
9988
INPUTS OWNED BY OTHERS SERVICES BY WAY OF JOB WORK 12%

9988
INPUTS OWNED BY OTHER MANUFACTURING SERVICE physical 18%

Kindly confirm which % tax to be charged
inputs owned by others

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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07 July 2024 For services provided by way of job work where inputs are owned by others, the applicable GST rate is 12% as per Notification No. 20/2019 dated September 30, 2019. This rate applies specifically to services under HSN code 9988:

- **HSN Code 9988 (Service Category):** Services by way of job work where inputs are owned by others

Therefore, if you are a registered manufacturer sending inputs owned by you to another registered job worker for processing or job work, and they are using those inputs to provide job work services, the GST rate applicable on those services is 12%. This rate ensures compliance with the GST notification and should be charged accordingly on the invoice for the job work services provided.

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