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Confirmation on gst rate

Nikita Rane (42 Points)

04 December 2019

can any one confirm me that, the gst rate on Labour charges is 18% ?????

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RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 04 December 2019

Yes.... Except Job Work.

Raksha (Student CA Final ) (397 Points)
Replied 04 December 2019

If it covers under 9985 SAC code i.e Other employment & labour supply services n.e.c then 18% rate is applicable .

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RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 04 December 2019

No... It's not specifically mentioned any codes or supplies. It's only applicable to Job works as per definition under GST. As

“job work means any treatment or process undertaken by a person on goods belonging to another registered person and the expression job worker shall be construed accordingly” [Section 2(68)]

Job works charges As per Notification 20/2019-CT(R) Dt: 30/09/2019.

i) For diamond related services

Rate of GST reduced from 5% to 1.5% on supply of job work services in relation to diamonds.

ii) For engineering related services other than bus body bldg.

The rate of GST reduced from 18% to 12% on supply of machine job work such as in engineering industry, except supply of job work in relation to bus body building which would remain at 18%.