Respected Sir,
I am having one trading unit.
Would like to know that can we purchase raw material and give it to the jobwork company having registered no. ?
The firm making jobwork will give me the complete item ?
How shall the GST will be applicable ? How to be treated with tax credit ?
Pls help me to carry out the solution of this issue in GST.
Regards,
Sarju
Trader Queries GST Rules for Sending Raw Materials to Jobwork; Must Pay 18% Reverse Charge if Job Worker Unregistered A trader inquired about the process of purchasing raw materials and sending them to a jobwork company under the Goods and Services Tax (GST) regime. The response clarified that if the trader is registered under GST, they can send inputs for jobwork. If the job worker is not registered, the trader must pay 18% GST on job charges under reverse charge. The trader can claim input tax credit on the purchase of inputs. The GST rate on the finished goods supply could not be determined due to a lack of product description. (AI Summary)
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