TaxTMI 
TaxTMI 
JOB-WORKER IS A MANUFACTURER, TRADER OR SERVICE PROVIDER ?
JOB-WORKER IS MANUFACTURER, TRADER OR SERVICE PROVIDER
07 Sep 2017 
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Job work as service: job-workers are suppliers of service under GST, not traders; manufacturer status possible in limited cases.
Job work is principally a supply of service and, under Schedule II, a job-worker is treated as a service provider supplying services to the principal. A job-worker cannot be characterised as a trader because the activity is performed on behalf of another. The job-worker may be regarded as a manufacturer only in limited circumstances where the principal designates the job-worker's premises as an additional place of business and a manufacturing process is carried out for the principal. (AI Summary)
Job work is principally a supply of service and, under Schedule II, a job-worker is treated as a service provider supplying services to the principal. A job-worker cannot be characterised as a trader because the activity is performed on behalf of another. The job-worker may be regarded as a manufacturer only in limited circumstances where the principal designates the job-worker's premises as an additional place of business and a manufacturing process is carried out for the principal. (AI Summary)