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Gst impact on job work (labour charges)

neetha m s (bangalore) (34 Points)

07 July 2017

One Garment factory doing job work (Sub contract of cut to packing of shirts) till now they do not charged tax ., now How GST to be applied for job work and what is the percentage?

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3 Replies

Amit Goel (Chartered Accountant) (375 Points)
Replied 07 July 2017

Under GST, As per Schedule II Point no.3: Any treatment or process which is applied to another person's goods is a supply of service.

Below specified cases are taxable @ 5% And all other are taxable @ 18%

Services by way of job work in relation to-
(a) Printing of newspapers;
(b) Textile yarns (other than of man-made fibres) and textile fabrics;
(c) Cut and polished diamonds; precious and semi-precious stones; or plain and studded
jewellery of gold and other precious metals, falling under Chapter of HSN;
(d) Printing of books (including Braille books), journals and periodicals;
(e) Processing of hides, skins and leather falling under Chapter 41 of HSN.