GST rate on jobwork.

This query is : Resolved 

Quick Summary
From 22 September 2025, GST rates for jobwork will change. Many notified services, including umbrellas, printing, bricks, pharmaceuticals, and leather, will now have a concessional rate of 5%. However, all other general jobwork services will see an increase to 18%. The previous 12% rate has been discontinued, with businesses needing to adapt to these sector-specific changes for compliance.

07 September 2025 Which rate eligible after 22th September 2025 on jobwork ?

Please help.

07 September 2025 Most notified job work services have moved to a concessional 5% GST rate, while all other residual job work services see a higher 18% rate from September 22, 2025.

20 September 2025 New GST Rates Effective 22 September 2025

Umbrellas job work: 5% (earlier 12%).

Printing job work (Ch. 48 & 49): 5% (earlier 12%).

Brick job work: 5% (earlier 12%).

Pharma job work (Ch. 30): 5% (earlier 12%).

Hides, skins & leather job work (Ch. 41): 5% (earlier 12%).

All other "residual"/general job work: 18% (earlier 12%).

22 September 2025 Why not changes, current rate is 12% now new rate is 18%

22 September 2025 As per the latest GST Council decisions, the rate now depends on the type of job work:

For specific sectors like umbrellas, printing, bricks, pharmaceuticals, hides, skins and leather, the GST rate is reduced to 5% from 12%.

For residual or general job work not explicitly covered by these categories, the GST rate is increased to 18% from 12%.

22 September 2025 Notified sectors (umbrellas, printing, bricks, pharma, leather) now enjoy a sharply reduced 5% GST rate, helping industries lower outsourcing costs substantially.

All other categories of job work, not specifically notified, have seen rates increase to 18%, making general outsourcing more expensive.

The previous flat 12% slab has been discontinued, replaced by sector-specific slabs as part of GST 2.0 reforms.

Input Tax Credit rules largely remain unchanged, but businesses need to update contracts and IT systems for proper invoicing and compliance with new rates.

These changes create clear winners (key manufacturing sectors) and costlier compliance for all other general job work services under GST after September 2025.


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