Earlier, the CBIC vide Notification No. 15/2021-Central Tax (Rate) dated November 18, 2021 amended Notification No.11/2017- Central Tax (Rate), dated June 28, 2017 (“Services Rate Notification”) in a following manner w.e.f. January 01, 2022:
- In S. No. 26 of the Services Rate Notification, related to ‘manufacturing services on physical inputs (goods) owned by others’, in item (i), in clause (b) regarding the services by way of job work in relation to textiles and textile products, after the words, “Customs Tariff Act, 1975 (51 of 1975)” the words “except services by way of dyeing or printing of the said textile and textile products” has been inserted.
Thus, Job work services w.r.t dyeing or printing of textile and textile products falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) provided to registered persons shall be taxable @ 12% and to unregistered persons shall be taxable @ 18% as the scope of ‘job work’ is restricted to only those processes undertaken on goods belonging to another registered person.
However, Notification No. 22/2021-Central Tax (Rate) dated December 31, 2021 has been issued in suppression of Notification No. 15/2021-Central Tax (Rate) dated November 18, 2021 so as to remove above- mentioned amendment. Thus, now previous rates as appliable on Job work services w.r.t dyeing or printing of textile products falling under Chapter 50 to 63 provided to registered person haven restored i.e., 5%.
Similar notifications have been passed under Integrated Goods and Services Tax Act, 2017 (“the IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“the UTGST Act”).
CGST (Rate) Notification: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-22-2021-cgst-rate.pdf
IGST (Rate) Notification: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-22-2021-igst-rate-english.pdf
UTGST (Rate) Notification: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-22-2021-utgst-rate.pdf