Goods and Services Tax – Started By: – Yatin Bhopi – Dated:- 4-8-2017 Last Replied Date:- 11-8-2017 – 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 the cost of product 'B' will be borne by the principal. – Reply By HimansuSekhar Sha – The
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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%.RegardsS.Ramaswamy – Reply By Yatin Bhopi – The Reply = Dear SirHe will raise saperate bill for goods and services –
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