Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

JOB WORK VS MAKING CHARGES in GST how to consider

1075 views

Save Share

MPR Sanjay Kumar

1675 Points Posted on 16 February 2023

dear CA club India,

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

Replies (3)

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.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121528 Points Posted on 16 February 2023

Supply of service.... generally taxable at 18% rate, unless specified otherwise.

MPR Sanjay Kumar

1675 Points Posted on 17 February 2023

@ Honourable Dhirajlal Lal rambhia sir thanks,

Could you please give me a meaning of this JOB work and making charges and also some examples x and y for my better practical understanding

Humble request sir

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 17 February 2023

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.