Transactional Value of Job Work under Model GST Law

[Partha Sarkar]

What would be transactional value under 'Job Work' on which GST to be applicable.It itself the Principal value of the Items on which job work to be done or it would be the service/Job order value between customer or service provider.Means an Items to be reconditioned or repaired whose original value was INR 100/- but for reconditioning order(service) value awarded by Cutomer INR 50/-

AI Summary

Debate on GST Application: Should Tax Be on Principal Item Value or Service Order Value? Customs Valuation Rules May Apply. A discussion on the transactional value for 'Job Work' under the Model GST Law raised the question of whether GST should be applied to the principal value of the items or the service/job order value. An example given was an item originally valued at INR 100, with a reconditioning service order valued at INR 50. One response indicated that the valuation provision was still pending, while another stated that GST valuation would follow the Customs Valuation Rules.