XYZ (Sender of the goods) and PQR (job worker) both are registered under GST. The activity carried out by PQR amounts to manufacture. PQR is required to charge 12% GST or 18%?
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GST on job work
Replies (3)
18% gst rate
Rate Gst @ 12% for Job Work.
As per Notification No. 20/2019 - Central Tax ( Rate ), dated 30th September 2020, the GST Rate on Engineering Job Work is 12%.
Also as per Circular No. 126/45/2019 - GST, dated 22nd November 2019, it was clarified that all the "Registered" taxpayers under JOB WORK are to be levied with GST @ 12%.
Since in your case the Job Worker ( PQR ) is a Registered Person, PQR needs to collect GST @ 12% from XYZ ( the Principal ).
Regards,
Shivam RC.
Also as per Circular No. 126/45/2019 - GST, dated 22nd November 2019, it was clarified that all the "Registered" taxpayers under JOB WORK are to be levied with GST @ 12%.
Since in your case the Job Worker ( PQR ) is a Registered Person, PQR needs to collect GST @ 12% from XYZ ( the Principal ).
Regards,
Shivam RC.
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