A labour supplier contractor received a contract to supply labour by the unit of Food product which HSN 998813/998814/998816 for doing work. contractor raise bill with GST @ 18% but food product unit says GST will be charged 5% as per notification no. 20/2019 Dt. 30.09.2019 because we given contract for job work. please. clarify what will charged by contractor to food product unit on raised bill

Reply- Employment services including personnel search, referral service and Labour supply service is covered under SAC code 99851 and attracts 18% GST. 

Services by way of job work in relation to all Food and Food products falling under chapter 1 to 22 attracts 5% GST.  If service provided falls under the category of job work, 5% tax will be applicable. But services provided by you are labour supply services which attract 18% tax.