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GST on job charges

mahesh mundhra (propriter) (11 Points)

13 July 2017

I just want to know that is there GST on job charges if yes, then how much ?

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10 Replies

RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 13 July 2017

Dear Mahesh...?

Some persons asked here "Job work charges, Labour Charges or Service Charges"...

But., My reply is, Many more job works in Service sector. So, please ask what you want that post your exacly services/Job works/Labour Works......

Vineeth PN (Account Assistant) (687 Points)
Replied 13 July 2017

Dear Sir, We are manufactures of HSN 8413. our raw material is cast iron at HSN 7325. we are sending material to jobwor for machining like Drilling, CNC machining, Zinc Plating Etc. as per central excise we got exemption. How to work in GSt Regime. Form sending Job work is it taxable supply? Material returning after job work.is it taxable supply?

Sandeep Upadhyay (1518 Points)
Replied 14 July 2017

Basics of Job Work

A manufacturer may send out his goods to a job worker for initial process, intermediate process, assembly, packing or any other completion process and later supply such goods to its customers or use in any other manufacturing process accompanied by its own. The goods sent for job work maybe raw material, component parts, semi-finished goods and even finished goods. The resultant goods could be with same characteristics or with variation of the product send for job work

Procedure and compliance under GST

A. Goods send out for job work must be accompanied with a challan

B. Goods send must be received back by the principal within the period mentioned below:

Inputs, semi-finished or finished goods- 1 yearCapital Goods- 3 years

Of being send out by the principal to the job worker

C. In case where the goods send have not been received back within the period as mentioned above, such goods will be treated as supplied to the job worker by the principal.

Further tax will be required to be paid by the principal on such deemed supply.

D. Principal may on his own will

Receive back the goods after processing from job workerSupply to his customers from the place of business of job worker

Under both the situations ITC paid on purchase of goods send on job work will be allowed to the principal.

E. Waste and scrap generated during the initial process, intermediate process, assembly, packing or any other completion process may be sold on payment of tax by:

Job worker- if he holds a registrationPrincipal- if job worker does not hold a registration

mahesh mundhra (propriter) (11 Points)
Replied 14 July 2017

we are manufacturer of HDPE woven fabric. our raw material is plastic granula . if party"A" sends us raw material as plastic granual for job work to make HDPE woven fabric. And after processing or making fabric we generate invoice of job charges. for e.g party " A" sends 1000 kg raw material . our job charges is 30/- per kg . we send back 1000kg HDPE woven fabric after processing that raw material.
so I would generate job invoice of rs 30000(1000kg*30/- per kg). so my question is that " on this amount of job charges , is there any GST . if yes , how much .?