Page 138 - GSTL_26th March 2020_Vol 34_Part 4

648 GST LAW TIMES [ Vol. 34
(3) (4) (5)
“(ib) Services by way of job work in relation to diamonds fall- 0.75 -
ing under chapter 71 in the First Schedule to the Customs Tariff
Act, 1975 (51 of 1975);
(ic) Services by way of job work in relation to bus body build- 9 -
ing;
(id) Services by way of job work other than (i), (ia), (ib) and (ic) 6 -”;
above;

(o) against serial number 26, in column (3), in item (tv), after the brackets,
words and figures “(ia)”, the brackets, words and figures “(ib), (ic), (id),”
shall be inserted;
The said notification is issued on the recommendation of the GST Council which
accepted the recommendations of Fitment Committee. The relevant recommen-
dation of the fitment committee is as under :

2 (i) Reduce (i) To being Recommendation :
GST rate for engineering job The rate of GST on all work ser-
engineering job work at par with vices, which are not currently
work from 18% leather & textile eligible for the 5% rate may be
to 5% job work. reduced to 12%.
Reference (ii) Most job Analysis :
Vellore District workers belong to The rate of job work services has
Small & Tiny small and medi- been reduced to 5% mainly where
Industries As- um scale sector the final product attracts GST @
sociation and varying rates 5% or lower, such as textile sector,
(ii) All kind create problem in processing of hides, skin leather
of job work compliance and and footwear, printing of books
may be managing chal- and newspapers, diamond cutting
charged at uni- lans further in job and polishing, manufacture of
form rate of 5% work credit flows handicraft goods, tailoring ser-
Reference from principal vices etc.
and job workers.
Laghu Udyog It is revenue neu- The GST applicable on job work
Bharti tral exercise. services in other major sectors
such as manufacturing of indus-
trail goods automobiles, chemicals,
pharmaceuticals, heavy engineer-
ing goods machines and instru-
ments steel and other metal is 18%.
Job workers in the engineering
and automobile sector have sub-
stantial ITC. The inputs and input
services used by job workers in
these sectors attract GST @ 18%
out of the total tax payable on job
work services 71% (sic) was paid
through ITC Reducing the rate on
job work services in this sector
from to 18% to 5% will result in
inversion at the level of Job work-
er.

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