The job work hsn code is SAC 9988, which covers manufacturing and processing done for a principal who owns the goods, and GST on job work is 5% for a set list of goods (textiles, food, medicines, printing of books and a few others), 1.5% for diamonds and 18% for everything else. The rate follows the goods being worked on, not the type of work.
This page explains the 6 digit codes, how to pick the rate, the job work challan rules for sending goods out, and a sample job worker's bill. Other service codes are on the SAC code hub.
Job work: codes and GST rates
Item / SAC / GST- Job work on textiles and garments (Chapters 50 to 63)5%Including dyeing, printing, stitching
- Job work on food products (Chapters 1 to 22)5%Milling, packing, processing
- Job work on Chapter 23 products (except pet food)5%Cattle feed and similar
- Job work on medicines (Chapter 30)5%Pharma job work
- Job work on hides, skins and leather (Chapter 41)5%Not leather goods or footwear
- Printing of books, newspapers, journals5%And other goods of Chapters 48 or 49 at 5% or nil
- Job work on bricks taxed at 5%5%Chapters 68 or 69
- Job work on gold and silver jewellery (Chapter 71, not diamonds)5%Making charges on customer's gold
- Job work on diamonds1.5%Cutting and polishing
- Job work for alcoholic liquor18%Manufacture of liquor
- All other job work: engineering, plastics, auto parts18%Residual job work rate
- Tailoring services5%Stitching for customers
Quick facts
SAC heading
9988: manufacturing services on inputs owned by othersCommon codes
998821 food, 998822 textiles, 998898 other manufacturing servicesLower rates
5% for listed goods, 1.5% for diamondsStandard rate
18% (9% CGST + 9% SGST)Source
Entry 26 of notification 11/2017 as substituted by 15/2025Digits to print
4 up to Rs 5 crore turnover, 6 above
9988 hsn code description and 6 digit codes
| Code | Service |
|---|---|
| 998811 | Meat processing services |
| 998812 | Fish processing services |
| 998813 | Fruit and vegetable processing services |
| 998816 | Dairy product manufacturing services |
| 998817 | Other food product manufacturing services |
| 998821 | Textile manufacturing services |
| 998822 | Wearing apparel manufacturing services |
| 998823 | Leather and leather product manufacturing services |
| 998842 | Paper and paper product manufacturing services |
| 998853 | Pharmaceutical product manufacturing services |
| 998860 | Plastic and rubber product manufacturing services |
| 998873 | Metal working services (cutting, machining, coating) |
| 998898 | Other manufacturing services n.e.c. |
Job work gst rate: 5%, 1.5% or 18%
Entry 26 of the services notification sets the job work rates. It is 5% for job work on food of Chapters 1 to 22, Chapter 23 products other than pet food, medicines of Chapter 30, hides and leather of Chapter 41, printing of newspapers, books and journals and of other Chapter 48 or 49 goods taxed at 5% or nil, textiles of Chapters 50 to 63, bricks taxed at 5%, Chapter 71 products other than diamonds, handicraft goods and umbrellas. Diamonds are 1.5%. Job work for making alcoholic liquor, and all other job work, is 18%.
Job work hsn code in practice: textiles and engineering
A dyeing unit that dyes a trader's grey fabric charges 5%, because fabric is a Chapter 52 to 55 good. An embroidery unit doing work on sarees charges 5%. A machine shop that turns, drills or coats steel parts sent by a manufacturer charges 18%, since metal goods are not on the 5% list. A goldsmith making ornaments from a customer's gold charges 5% on making charges; see gold.
Job work challan and the 1 year limit
A registered principal can send inputs to a job worker without paying tax, using a delivery challan. The goods must come back within 1 year (3 years for capital goods), or be supplied from the job worker's premises. Otherwise the original dispatch is treated as a supply on the day it left. The principal reports goods sent and received in form ITC-04 on the GST portal.
Job worker's invoice
Dyeing unit's bill: Dyeing of cotton grey fabric owned by the customer, SAC 998821, 5,000 metres, taxable value Rs 40,000. CGST 2.5% Rs 1,000. SGST 2.5% Rs 1,000. Total Rs 42,000.
The job worker charges GST only on its own charges, not on the value of the customer's goods. Materials the job worker adds, such as dyes and chemicals, are part of its job work charge.
Job work or labour or sale
- If the job worker uses mostly its own material and delivers a new product, it is a sale of goods, not job work.
- If the work is on a building or other immovable property, it is a construction or labour service, not job work.
- If the goods belong to an unregistered person, such as tailoring for a household, the job work entry for registered persons may not apply; tailoring services are 5%.
Job work rates are set by a long entry with several conditions, and this page gives only the general picture. Check entry 26 of the current services notification on the GST portal and ask a GST practitioner or chartered accountant to confirm the rate for your process.
Frequently asked questions
What is the 9988 hsn code gst rate?
Job work under SAC 9988 is 5% for listed goods such as textiles, food, medicines and printing of books, 1.5% for diamonds, and 18% for other goods.
What is the hsn code for job work?
Job work uses SAC 9988. Textile job work is 998821 and other manufacturing services 998898.
What is SAC 998898?
It is the code for other manufacturing services not elsewhere classified, usually at 18%.
Is GST charged on the value of goods sent for job work?
No. Goods sent on a challan are not taxed if they return within the time limit. The job worker charges GST only on its charges.
What is the GST on job work charges for garments?
Job work on garments and other textiles is 5%.