Clarification on Job Work : Circular No. 126/45/2019 GST
Scope of the notification entry at item (id), related to job work, under heading 9988 of Notification No 11/2017 Central Tax (Rate) dated 28 06 2017
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• Entries at items (id) and (iv) under heading 9988 read as under :
|(id) Services by way of job work other than (i), (ia), (ib) and (ic) above||6||–|
|(iv) Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (id), (ii), (iia) and (iii) above||9||–|
• There is a clear demarcation between scope of the entries at item (id) and item (iv) under heading 9988 of Notification No 11/ 2017-Central Tax (Rate) dated 28 06 2017.
• Entry at item (id) covers only job work services as defined in section 2 (68) of CGST Act, 2017 that is, services by way of
treatment or processing undertaken by a person on goods belonging to another registered person.
• On the other hand, the entry at item (iv) specifically excludes the services covered by entry at item (id), and therefore, covers only such services which are carried out on physical inputs (goods) which are owned by persons other than those registered under the CGST Act