This SAC chapter applies to service providers engaged in maintenance, repair, servicing, or installation of…
SAC 9988 – Manufacturing Services on Physical Inputs Owned by Others (Job Work)
This SAC chapter applies to service providers who carry out manufacturing, processing, or production activities on goods owned by another person, where ownership of inputs and outputs remains with the principal. It commonly covers job work arrangements, contract manufacturing, processing, assembling, packing, or finishing activities performed on materials supplied by clients.
| SAC | Service Classification Description | GST Rate |
|---|---|---|
| 998811 | Manufacturing or processing services on physical inputs owned by others, including job work in relation to goods other than specified concessional categories. | 18% |
| 998812 | Job work services in relation to textiles, textile products, and apparel items where inputs are owned by the principal. | 5% / 12%* |
| 998813 | Job work services in relation to printing, packaging, labelling, or finishing of goods owned by another person. | 18% |
| 998814 | Job work services relating to food products, beverages, or agricultural produce supplied by the principal. | 5% / Nil* |
| 998819 | Other manufacturing or processing services on goods owned by others not specifically classified elsewhere under this chapter. | 18% |
* Concessional or nil rates apply only to specified goods and conditions as notified.
Relevant Notes
- This chapter applies only where ownership of goods remains with the principal throughout the process.
- Movement of goods for job work is governed by GST job work provisions, including delivery challans and return timelines.
- If the service provider uses own materials as the main input, classification may shift to supply of goods or works contract.
- Applicable GST rate depends on the nature of goods processed, as notified from time to time.
Notes: Classification and GST rates for job work and manufacturing services on physical inputs owned by others are governed by Notification No. 11/2017 – Central Tax (Rate), relevant job work notifications, and corresponding State/Integrated Tax notifications, as amended from time to time.