TaxTMI 
TaxTMI 
Dear Expert,
Please suggest whether GST is applicable on Job Work Charges raised by Job worker.
Urgent reply is appreciated
GST on JOB work Charges
08 Jun 2017 
25 Replies 
49098 Views Asked by
Job work taxation under GST: job worker service charges are taxable while principals may claim input credit for that tax.
Job work services are taxable under GST and the job worker must charge GST on processing charges; the principal may send inputs or capital goods to a job worker and retrieve them without payment of tax under the prescribed job work procedure, but that exemption covers the goods movement and not the job worker's service charge. Intra unit movements within the same GST registration are not treated as job work between distinct persons. Registration threshold rules determine whether the job worker must register and charge GST, and any GST charged by the job worker is available as input tax credit to the principal. (AI Summary)
Job work services are taxable under GST and the job worker must charge GST on processing charges; the principal may send inputs or capital goods to a job worker and retrieve them without payment of tax under the prescribed job work procedure, but that exemption covers the goods movement and not the job worker's service charge. Intra unit movements within the same GST registration are not treated as job work between distinct persons. Registration threshold rules determine whether the job worker must register and charge GST, and any GST charged by the job worker is available as input tax credit to the principal. (AI Summary)