Regarding job work
Querist : Anonymous
Querist : Anonymous
Querist : Anonymous
Querist : Anonymous
✅ 1. GST Applicability on Job Work
Yes, GST is applicable on job work services.
🔹 Definition:
As per Section 2(68) of CGST Act, Job work means any treatment or process undertaken by a person on goods belonging to another registered person.
🔹 GST Rate:
Generally 18% for most job work services.
Reduced rates (5% or 12%) may apply for certain job work related to textiles, printing, diamond cutting, etc.
🔹 If You're Registered:
You must charge GST on your invoice and file regular returns (GSTR-1, GSTR-3B, etc.).
🔹 If You're Not Registered:
If your aggregate turnover is below ₹20 lakhs (₹10 lakh in special category states), then registration is not mandatory, and GST is not applicable until you cross that limit.
✅ 2. Impact Under Income Tax Act
Under Income Tax, job work income is treated as business income.
🔹 You need to:
Report income under “Profits and Gains of Business or Profession”.
Maintain books of accounts if turnover exceeds limits under Section 44AA.
Pay advance tax if your tax liability exceeds ₹10,000/year.
🔹 Presumptive Taxation (Section 44ADA or 44AD)?
If you're an individual or proprietor, and your turnover is below ₹2 crore:
You may opt for Section 44AD, declare at least 8% (or 6% for digital receipts) as net profit.
This avoids the need to maintain books or get an audit.
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