Job Work HSN Code: Understanding HSN Classifications for Job Work Services
Job work services are widely used in manufacturing and processing where one person sends goods to another person for finishing or further processing. Under GST, these services must be billed with the correct job work HSN code so that tax, input credit and returns stay accurate.
This guide explains what the job work HSN code is, how the eight digit codes work for different sectors and how GST rates apply to job work services in the present structure.
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What Is the Job Work HSN Code?
The GST law defines job work as any treatment or process carried out by a person on goods that belong to another registered person. In simple words, the job worker does processing on inputs owned by the principal and charges a processing fee as consideration.
In GST classification, job work services on goods are grouped under chapter ninety nine, in the service heading 9988 . This heading is described as manufacturing services on physical inputs owned by others. It covers contract manufacturing, assembly, finishing and other processing services where the inputs are supplied by the customer.
The four digit code 9988 is the broad family for most manufacturing type job work services. Inside this family, eight digit codes give more detail about the sector, such as textiles, food, metals, machinery, electronics and many others.
So when people refer to the job work HSN code, they usually mean this service group 9988 and its detailed lines, which are used to identify job work in GST registration , invoicing and return filing.
Job Work SAC Code Classification and GST Rates
Here are some commonly used HSN codes and GST rates for this category
4 Digit SAC Code Classification
| HSN/SAC Code | HSN/SAC Code Title | GST Rate |
|---|---|---|
| 9954 | Other construction services | 18% |
| 9964 | Other Passenger transport services | 18% |
| 9973 | Other Leasing or rental services, with or without operator | Same rate of integrated tax as applicable on supply of like goods involving transfer of title in goods |
| 9983 | Any services provided by, _(a) the National Skill Development Corporation set up by the Government of India;(b) a Sector Skill Council approved by the National Skill Development Corporation;(c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;(d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to-(i) the National Skill Development Programme implemented by the National Skill Development Corporation; or(ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or(iii) any other Scheme implemented by the National Skill Development Corporation. | 0% |
| 9984 | Services of public libraries by way of lending of books, publications or any other knowledge-enhancing content or material. | 0% |
| 9986 | Support services to mining, electricity, gas and water distribution | 18% |
| 9988 | Other Manufacturing services on physical inputs (goods) owned by others | 18% |
| 9991 | Services provided by a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services to"(iii) the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity; | 0% |
| 9996 | Services provided by a race club by way of totalisator or a license to bookmaker in such club | 18% |
6 Digit SAC Code Classification
| HSN/SAC Code | HSN/SAC Code Title | GST Rate |
|---|---|---|
| 995413 | Construction services of industrial buildings such as buildings used for production activities (used for assembly line activities), workshops, storage buildings and other similar industrial buildings | 18% |
| 995422 | General construction services of harbours, waterways, dams, water mains and lines, irrigation and other waterworks | 18% |
| 995423 | General construction services of long-distance underground/overland/submarine pipelines, communication and electric power lines (cables); pumping stations and related works; transformer stations and related works. | 18% |
| 995424 | General construction services of local water & sewage pipelines, electricity and communication cables & related works | 18% |
| 995428 | General construction services of other civil engineering works n.e.c. | 18% |
| 995432 | Site formation and clearance services including preparation services to make sites ready for subsequent construction work, test drilling & boring & core extraction, digging of trenches. | 18% |
| 995479 | Services involving Repair, alterations, additions, replacements, maintenance of the completion/finishing works covered above. | 18% |
| 996421 | Long-distance transport services of passengers through Rail network by Railways, Metro etc | 18% |
| 997333 | Licensing services for the right to reproduce original art works | Same rate of integrated tax as applicable on supply of like goods involving transfer of title in goods |
| 998316 | IT infrastructure and network management services | 18% |
| 998348 | Certification and authentication of works of art | 18% |
| 998414 | Private network services | 18% |
| 999633 | Original works of authors, composers and other artists except performing artists, painters and sculptors | 18% |
* GST rates may vary based on the latest GST notifications and amendments
Job Work HSN Code Eight Digit and Its Application
Within heading 9988, the eight digit codes are used to show the exact type of job work. The first two digits ninety nine show that it is a service. The next two digits eighty eight point to the manufacturing service family. The last four digits identify the sector such as food products, textiles, leather, metals or machinery.
For example, there are separate eight digit codes for textile manufacturing services, wearing apparel manufacturing services, leather product manufacturing services, wood and paper manufacturing services, metal product manufacturing services and machinery manufacturing services. Each of these codes still sits inside the main 9988 group.
When a job worker issues a GST tax invoice, they normally mention the most suitable eight digit job work code based on the type of goods they process. A unit that only does textile job work will select the textile manufacturing service code, while an engineering job worker who machines metal parts will choose a metal or machinery manufacturing service code.
Using the correct eight digit code helps the system report job work turnover by sector and also makes it easier for tax officers to understand what kind of processing is being done. It also avoids confusion between job work services and works contract or trading activities, which have different codes and tax rules.
GST on Job Work Services and HSN Code Classification
The job work HSN code decides where job work sits in the service rate table. The GST Council then fixes slab wise rates for job work in different sectors, such as textiles, food processing, diamonds and other manufacturing services.
In earlier years of GST, job work services saw a mix of rates like 5%, 12%, 18% and 1.5%, depending on the sector. Over time, these rates were rationalised. From twenty two September twenty twenty five onwards, most job work entries are aligned with the three slab model where concessional categories sit at 5%, special cases like diamond job work sit at 1.5% and residual job work that is not covered by any concession is taxed at 18%.
Textile and apparel job work , leather processing, brick manufacturing job work, certain food processing job work and some printing related job work often enjoy concessional rates around 5% under specific entries . On the other hand, general manufacturing job work that does not fall in any concessional list is usually covered by an entry that puts it in the standard 18% slab.
For a typical engineering or fabrication job worker , this means that their services under heading 9988 will normally attract 18% GST once they cross the registration threshold. Only when their activity exactly matches a notified concessional category can they apply a lower rate like 5% or 1.5%, and even then they must keep proper documents to support the treatment.
Because job work services are usually provided to registered businesses, the GST charged by the job worker is often fully available as input tax credit to the principal. This is why, in many manufacturing chains, moving residual job work from 12% to 18% does not increase the final tax cost, but it does change working capital and the rate at which tax is collected.
Job work service providers use the 9988 group and the relevant eight digit code while issuing invoices, preparing outward supply data and filing GST returns . When they declare their outward supplies in the returns, these services are captured under the service code family 9988, which helps in rate verification and audit. Accurate classification lowers the chance of disputes and notices related to undercharging or overcharging of GST on job work.
Conclusion
The job work HSN code is central to correct GST treatment of outsourced manufacturing and processing services. Most such services are grouped under the service heading 9988, with eight digit codes that point to specific sectors like textiles, metals, machinery and food processing.
When job workers map their services to the correct job work HSN code and apply the proper GST rate, usually 18% for residual entries and 5% or 1.5% for notified concessional job work, their invoices remain accurate and their customers can claim input tax credit smoothly. This supports clean GST compliance and reduces the risk of penalties linked to wrong classification or wrong rates on job work bills.
