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Job work GST rate and ITC

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dear team please advice that I am collecting tax 18 percent on job work of metal coating and taking the input of ITC. pls provide any circular on this that I am collecting the right.
2. GST audit is saying that u have to take GST only 12 percent only without ITC is it correct or wrong pls advise.
pls provide the circular for above...
Replies (4)
The correct rate for job work in general is 12% but even then ITC is available

job work GST circular 126/45/2019

GST payable @ 12% with ITC available.

Correct rate of GST on job work (where the principal is registered) is 12%.

You may refer Circular 126/45/2019-GST dated 22.11.2019. Read para 2 along with para 4 of the circular.

Further, there is no ITC restriction. ITC can be availed fully.

Correct rate is 12%


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