GST rate of Labour Work in Factory (Fabrication Work)

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This discussion clarifies the Goods and Services Tax (GST) applicable to fabrication labour work. The correct GST rate, typically 12% or 18%, depends on several factors. These include whether the transaction is Business-to-Business (B2B) or Business-to-Consumer (B2C), and crucially, who owns the goods on which the work is performed. If you own the goods and are registered, it's generally 12%; otherwise, or for independent job work, it's usually 18%.

Dharmesh

Dharmesh (Querist)

14 June 2021 Dear Sir,
fabrication Work was done in our company, that party bill 12% GST charges in the bill how much to GST charges against code is 998717

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

14 June 2021 In case of job work, GST @12% is levied on B2B transaction and 18% on B2C transaction.

CA Altamush Zafar

CA Altamush Zafar (Expert)

15 June 2021 Depends on whether the work done on goods was owned by you or not. If yes then if you are registered then 12% otherwise 18%.
If the goods on which work is done is not owned by you then rate is 18%.
If it is an independent job (i.e. if it is not job work) then rate 18%.
It all depends on nature of work along with other factors

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