Job work includes repairing
Query (Issue) Started By: – dharti shah Dated:- 4-1-2019 Last Reply Date:- 5-1-2019 Goods and Services Tax – GST
Got 6 Replies
GST
Hi,
My client is a retailer of watches, The customers get their watches for repairing. Client sends them for repairing to other vendors. My question is whether it can be considered as job work. Please note : the client (principal ) is not a manufacturer.
Reply By KASTURI SETHI:
The Reply:
Dear Querist,
No. Both 'job work' and 'repair service of goods' are entirely different concepts under GST. Repair of goods (watches) fall under GST Tariff Code 9987 (998722) and job work of goods falls under HSN 9988. Actually job work is completion of goods by way o
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tion.
Reply By Abhishek Sethi:
The Reply:
Job work can only be done on behalf of registered persons. Assuming Customers who come over for repair are unregistered (likely scenario), service from Client to Customer shall be treated as repair service only.
In instant case, goods belonging to Customer are given to another vendor by Client – thus question may arise as to what is the relevance of word 'belonging' in definition of job work – Will it mean legal ownership or can cover physical possession also? If answer is limited to former, then such transaction to be treated as repair service only.
If qualified as job work, need to comply with GST ITC 04 as well as E-Way Bill
Kind regards,
Abhishek
Reply By KASTURI SETHI:
The Reply
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