Job work in gst

[PAWAN BANSAL]

We sold one item of pack of 2. Now purchaser asking to send one item of pack of 1 instead of one item of pack of 2........purchaser will return one item of pack of 2 and selller will send then one item of pack of 1 . .. .. ..

Can we consider this type of work as job work? ?

AI Summary

Job work: splitting returned sold goods is not job work but a sales return requiring credit note and reporting.
Qualification as job work requires that ownership remain with the principal and that the job worker perform a treatment or process per the principal's specifications. The described exchange-buyer returning one pack and seller supplying a different pack-involves transfer of ownership and no treatment, and therefore is a sales transaction with a sales return, necessitating issuance of credit notes and appropriate reporting in GST returns. Only goods sent under challan while ownership is retained and subjected to a specified process would constitute job work.