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Prakhar Softech Services Ltd.

CHAPTER - 11 - JOB WORK

EXEMPTED SERVICE

S.No.	DESCRIPTION OF SERVICE	Rate of Tax (%)
S.No.	DESCRIPTION OF SERVICE	CGST	SGST	IGST
(1)	(2)	(3)	(4)	(5)
1.	Heading 9986 Carrying out an intermediate production process as job work in relation to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce. [S.No.55 of Noti. No.12/2017-CT (Rate) (S.No.26) Dated: 28.06.2017]	Nil	Nil	Nil
2.	Heading 9986 Services by way of artificial insemination of livestock (other than horses). [S.No.55A of Noti. No.12/2017-CT (Rate) (S.No.26) Dated: 28.06.2017] Inserted by Noti. No.14/2018-CT (Rate) (S.No.226) dated 26.07.2018 w.e.f. 27.07.2018	Nil	Nil	Nil

TAXABLE SERVICE

S.No.	DESCRIPTION OF TAXABLE SERVICE	Rate of Tax (%)			Comman_Name
S.No.	DESCRIPTION OF TAXABLE SERVICE	CGST	SGST	IGST	Comman_Name
(1)	(2)	(3)	(4)	(5)	(6)
1.	Heading 9986 (Support services to agriculture, hunting, forestry, fishing, mining and utilities) Support services to exploration, mining or drilling of petroleum crude or natural gas or both. [S.No.24(ii) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017] and Amended by Noti. No.01/2018-CT (Rate) (S.No.172) dated 25-01-2018, Noti. No.20/2019-CT (Rate) (S.No.429) dated 30.09.2019	6	6	12
1.	Support services to mining, electricity, gas and water distribution other than (ii) above. [S.No.24(iii) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017]	9	9	18	Blasting services
2	Heading 9987 Services by way of house-keeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017. *Condition :* Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no. (iv)]. [S.No.25(i) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017]	2.5	2.5	5	Plumber, Electrician
2	Maintenance, repair and installation (except construction) services, other than (i) above and serial number 38 below. [S.No.25(ii) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017]	9	9	18
3.	Heading 9988 (Manufacturing services on physical inputs (goods) owned by others) Services by way of job work in relation to- (a) Printing of newspapers; (b) Textiles and textile products falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); (c) all products, other than diamonds, falling under [Chapter 71] in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) (d) Printing of books (including Braille books), journals and periodicals; (da) printing of all goods falling under Chapter 48 or 49, which attract CGST @ 2.5per cent. or Nil; (e) Processing of hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975). (ea) manufacture of leather goods or foot wear falling under Chapter 42 or 64 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) respectively; (f) all food and food products falling under Chapters 1 to 22 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); (g) all products falling under Chapter 23 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975), except dog and cat food put up for retail sale falling under tariff item 23091000 of the said Chapter; (h) manufacture of clay bricks falling under tariff item 69010010 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) (i) manufacture of handicraft goods. Explanation. -* The expression “handicraft goods” shall have the same meaning as assigned to it in the notification No.32/2017-Central Tax, dated the 15th September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.1158(E), dated the 15th September, 2017 as amended from time to time. [S.No.26(i) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017]	2.5	2.5	5
4.	Services by way of job work in relation to- (a) manufacture of umbrella; (b) printing of all goods falling under Chapter 48 or 49, which attract CGST @ 6per cent. [S.No.26(ia) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017]	6	6	12
5.	Services by way of job work in relation to- Services by way of job work in relation to diamonds falling under chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); [S.No.26(ib) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017]	0.75	0.75	1.50
6.	Services by way of job work in relation to- Services by way of job work in relation to bus body building; Explanation- For the purposes of this entry, the term “bus body building” shall include building of body on chassis of any vehicle falling under chapter 87 in the First Schedule to the Customs Tariff Act, 1975. [S.No.26(ic) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017] and Amended by Noti. No.26/2019 (S.No.466) dated 22.11.2019	9	9	18
7.	Services by way of job work in relation to- Services by way of job work other than (i), (ia), (ib) and (ic) above; [S.No.26(id) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017] Refer Circular No.126/45/2019-GST (S.No.465) dated 22.11.2019	6	6	12
8.	Services by way of any treatment or process on goods belonging to another person, in relation to- (a) printing of newspapers; (b) printing of books (including Braille books), journals and periodicals. (c) printing of all goods falling under Chapter 48 or 49, which attract CGST @ 2.5 per cent. or Nil [S.No.26(ii) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017]	2.5	2.5	5
9.	Services by way of any treatment or process on goods belonging to another person, in relation to printing of all goods falling under Chapter 48 or 49, which attract CGST @ 6 per cent. [S.No.26(iia) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017]	6	6	12
10.	Tailoring services. [S.No.26(iii) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017]	2.5	2.5	5
11.	Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (id), (ii), (iia), and (iii) above. [S.No.26(iv) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017] Refer Circular No.126/45/2019-GST (S.No.465) dated 22.11.2019	9	9	18
12.	Heading 9989 Services by way of printing of all goods falling under Chapter 48 or 49 including newspapers, books (including Braille books), journals and periodicals, which attract CGST @ 6 per cent. or 2.5 per cent. or Nil, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer. [S.No.27(i) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017] and Amended by Noti. No.20/2017-CT (Rate) (S.No.49) dated 22-8-2017, Noti. No.31/2017-CT (Rate) (S.No.89) dated 13-10-2017	6	6	12
12.	Other manufacturing services; publishing, printing and reproduction services; materials recovery services, other than (i) above.] [S.No.27(ii) of Noti. No.11/2017-CT (Rate) (S.No.11) Dated: 28.06.2017]	9	9	18

* Products falling under ch.71 are pearls, precious and semi precious stones, precious metals, rolls precious metals and articles thereof, imitation jewellery.

IMPORTANT DEFINITIONS

1. “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; [Sec.2(68) of CGST Act, 2017]

2. “print media” means,-

(i) ‘book’ as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867), but does not include business directories, yellow pages and trade catalogues which are primarily meant for commercial purposes;

(ii) ‘newspaper’ as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867); [para 2(zt) of Noti. No.12/2017-CT (Rate) dated 28.06.2017]

IMPORTANT POINTS

1. As per para 3 of Schedule II appended to the CGST Act, 2017 any treatment or process which is applied to another persons goods is a supply of services.

2. Tailoring services are taxable @ 5% under S.No.26(iii) by notification no.11/2017-CT-(Rate) dated 28.06.2017

3. Clarification on taxability of printing contracts — Requests have been received to clarify whether supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc., printed with design, logo, name, address or other contents supplied by the recipient of such supplies, would constitute supply of goods falling under Chapter 48 or 49 of the First Schedule to the Customs Tariff Act, 1975 (51of 1975) or supply of services falling under heading 9989 of the scheme of classification of services annexed to notification No.11/2017-CT(R) (S.No.103).

In the above context, it is clarified that supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc. printed with logo, design, name, address or other contents supplied by the recipient of such printed goods, are composite supplies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply.

Principal supply has been defined in Section 2(90) of the Central Goods and Services Tax Act as supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary.

In the case of printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services.

In case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. falling under Chapter 48 or 49, printed with design, logo etc. supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content [supplied by the recipient of supply] is ancillary to the principal supply of goods and therefore such supplies would constitute supply of goods falling under respective headings of Chapter 48 or 49 of the Customs Tariff.

[Circular No.11/11/2017-GST] Dated: 20th October, 2017