Regarding job work

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2018 Hi everyone. I do job work. Please tell me is gst applicable in job work done by me? And what is its impact under income tax act. Please reply as early as possible. Thanks in advance.

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2018 Plz reply my query. Its urgent

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2018 Plz reply as soon as possible

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2018 Plz reply my query. Its urgent

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

20 July 2025 Yes, your question is very relevant—especially for small businesses and service providers. Here's a clear breakdown of how GST and Income Tax apply to job work:

✅ 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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now