GST on JOB work Charges

[Guest]

Dear Expert,

Please suggest whether GST is applicable on Job Work Charges raised by Job worker.

Urgent reply is appreciated

AI Summary

GST Applies to Job Work Charges; Reverse Charge for Unregistered Workers. Intra-Company Transfers Exempt. Section 143 CGST Act Explained. A discussion forum addresses the applicability of GST on job work charges. Experts confirm that job work charges are taxable under GST. If the job worker is registered, they must pay GST; if not, the principal pays under Reverse Charge Mechanism (RCM). The debate extends to intra-company transfers between units with a single GST registration, where it's clarified that GST does not apply as it involves processing own goods. Section 143 of the CGST Act allows principals to send inputs to job workers without GST, provided goods are returned within a specified period. Job workers must charge GST on their services post-threshold exemption.