GST UPDATE: Clarification on tax rate applicable for job work services

Government of India has issued Circular No. 126/45/2019-GST dated 22nd November 2019 regarding clarification of scope of manufacturing services carried out on physical inputs (goods) which are owned by unregistered persons.Job work has been defined in CGST Act as under. “Job work means any treatment or processing is undertaken by a person on goods belonging to another registered person and the expression ‘job worker’ shall be construed accordingly.”
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 unregistered persons.