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.
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.