Jobwork Valuation: GST on Assembly Services

This query is : Resolved

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) valuation for job work, specifically for assembly processes where components are supplied by the principal. The consensus is that the taxable value for job work services should exclude the value of materials provided by the principal. This applies to both intrastate and interstate transactions. While these materials are excluded from the taxable value for GST, they must still be included when generating an e-way bill.

Munisami

Munisami (Querist)

13 January 2021 We are Job worker, we are doing assembly process in that some components add in assembly process, my query is what is the taxable value, whether we consider value of material supplied by principal for taxable vale or not

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

13 January 2021 Such job works are exempt from GST when materials are supplied by principal.
If job worker wants to raise tax invoice exclude material supplied by principal.

Munisami

Munisami (Querist)

13 January 2021 Thank you sir, Is this Interstate transaction also taxable value exclude the material supplied by principal

Munisami

Munisami (Querist)

13 January 2021 Thank you sir, Is this Interstate transaction also taxable value exclude the material supplied by principal

Read more at: https://www.caclubindia.com/experts/jobwork-valuation-2829579.asp

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

13 January 2021 In case of free supply exclude for interstate also for calculating taxable value.
For Eway bill such material should be included.