Service Code 9988 GST rate confusion

This query is : Resolved

pranab sarma (Querist)
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19 August 2024 Taxpayer has business of printing. They used this SAC code when paper is supply by the recipient and the recipient is registered under GST. Taxpayer observation is that since recipient is registered and input (paper) and content supplied by the recipient it constitute a job work and hence charged GST @ 5% with SAC code 9988 [ we are talking about only BOOK printing ]. Accordingly when paper is supplied by the recipient but the recipient is not registered under GST we charged 18% under SAC code 18%. But recently we got an order for book printing from an unregistered recipient who told us whether the recipient is registered or not not registered GST on book printing is 5%. Please suggest us in this matter

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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12 August 2025 Got it! Let's clarify the GST treatment for book printing under SAC 9988 when the paper is supplied by the recipient, considering whether the recipient is registered or not.
1. Service Accounting Code (SAC) 9988
SAC 9988 relates to Job Work Services.
Printing services where raw materials (like paper) are supplied by the recipient typically qualify as job work.
2. GST Rate on Job Work Services (SAC 9988)
As per GST Rate Schedule,
Job work services attract GST @ 5% (without input tax credit).
This is applicable regardless of the registration status of the recipient.
3. Printing Services GST Rate
Printing services where paper is supplied by the service provider:
Treated as supply of service with GST @ 18%.
Printing services where paper is supplied by the recipient (i.e., job work):
Treated as job work service with GST @ 5%.
4. GST Rate When Recipient is Unregistered
GST rates are applicable to the service provider and depend on the nature of service, not on the registration status of the recipient.
Whether the recipient is registered or unregistered, job work services (printing with recipient-supplied paper) attract 5% GST.
Recipient's GST registration status does not change the rate applicable to the supplier.
5. In Your Case:
You are providing book printing as job work (paper supplied by recipient).
Hence, GST should be charged at 5% under SAC 9988 regardless of whether the recipient is registered or not.
Charging 18% when the recipient is unregistered is incorrect if the paper is supplied by the recipient.

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