Job work done for overseas customer

[LAKSHMINARAYANAN TR]

Hi

Could any of our experts in the group help us get detailed procedure for Job Work done for overseas customer? Raw Material will be supplied by the foreign buyer, right from import of that raw material till supply of finished goods to overseas buyer, what are various compliance to be kept in mind. Your valuable insights are greatly appreciated.

best regards

TRL

[YAGAY and SUN]

You will pay the Customs Duty & IGST on import of goods for the purpose of Job Work.

Avail the Credit of IGST.

Conduct the job work on the goods received.

Issue Commercial Invoice, Tax Invoice, (for the value job work conducted) Packing list and pay the IGST or export under LUT/Bond.

[KASTURI SETHI]

I support the views of M/s. YAGAY and SUN, Sirs.

[Ganeshan Kalyani]

Consider receipt of material as import and pay taxes . Supply of goods is an export.

[CA Hemanth Kumar]

Dear Experts,

Can`t we apply the benefit of Notifiaiton No 32/1997 of customs to import goods (without payment of BCD).

Job work is a supply of service, how can we treat it as export of goods.

AI Summary

IGST treatment for imported inputs used in job work: pay IGST at import, claim credit, then export under LUT or pay IGST.
Import of buyer supplied materials should be treated as import with payment of Customs Duty and IGST, avail IGST credit, conduct job work, and document the job work value by issuing commercial/tax invoices and a packing list; the finished goods supplied overseas may be treated as exports either under export under LUT/Bond or by payment of IGST, while a question remains on applicability of customs duty exemption and whether job work is service export or export of goods.