Job Work under GST
Query (Issue) Started By: – Yatin Bhopi Dated:- 4-8-2017 Last Reply Date:- 11-8-2017 Goods and Services Tax – GST
Got 9 Replies
GST
Dear expert,
We wish to send Product "A" (e.g. 100kg) for job work. To get final product "C" job worker will add Product B (50kg) on his own account (purchase by him) and he will raise tax invoice to us for his processing charges plus cost of Product "B". My query is:
Whether this transaction is in line with Job worker procedure under GST law( since 50% or raw material is procured by job worker himself)
Reply By KASTURI SETHI:
The Reply:
Yes. There is no such restriction on Job worker. Job worker does job work for and behalf of the principal and
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that when proper and due GST is paid in full to Govt. Procedure s are relegated to the background. In pre-GST, such practice was allowed. GST being a new levy, no action on account of procedure lapse will be taken against the assessee. I do not treat it even a procedures lapse.
Reply By Yatin Bhopi:
The Reply:
thanks sir
Reply By KASTURI SETHI:
The Reply:
Do you agree sincerely or just expressed thanks ?
Reply By Yatin Bhopi:
The Reply:
Absulutly I agreed Sir.
Reply By Ramaswamy S:
The Reply:
As the person processing the goods is adding the material and manufacturing the product, he is a supplier of goods and not supplier of services. The tax is payable as goods classified under HSN and not as job work at 18%.
Regards
S.Ramaswam
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