what is mean by job work and making charges in GST, could you please give me an example for this
job work versus making charges how to consider in GST whether it is a expenses or supply of sales
please give me a case examples about this
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Quick Summary
This discussion clarifies the distinction between 'job work' and 'making charges' within the context of GST. Job work typically involves sending raw or semi-finished goods to a third party for further processing, with the goods returned to the principal. Making charges, on the other hand, are fees for the actual manufacturing or processing of items, such as gold jewellery, representing the cost of production and design.
Job work is done mostly in Manufacturing and trading company, like on Raw Material, semi Finished goods, were sent to job worker for further process and return back to principal with in time limit. On the contrary making charges are charged for making Gold ornaments, Gold Jewellery , Making charges are for processing of Gold . It is cost of the process involved in producing and designing each peace of Gold Jewellery that you purchase.