Dear expert,
We wish to send Product 'A' (e.g. 100kg) for job work. To get final product 'C' job worker will add Product B (50kg) on his own account (purchase by him) and he will raise tax invoice to us for his processing charges plus cost of Product 'B'. My query is:
Whether this transaction is in line with Job worker procedure under GST law( since 50% or raw material is procured by job worker himself)
Job Workers Can Use Their Own Materials Under GST; Must Issue Separate Invoices for Goods and Services. A discussion on a forum addresses a query about the applicability of GST procedures when a job worker uses their own materials in the manufacturing process. The original poster inquires if this aligns with GST laws, given that the job worker adds their own materials. Respondents clarify that there is no restriction under GST for a job worker to use their own materials, as long as the principal pays for them. It is noted that the job worker is considered a supplier of goods, not services, and should issue separate invoices for goods and services, with tax applicable as per goods classification. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
