Job Work Service

[Kaustubh Karandikar]

A) XYZ had supplied material to the Job worker (Material X)

B) Job worker has used his own material for further processing (Material Y)

C) Job worker has supplied Job work service to XYZ as well, (Service Z).

In the above case, how invoice should be raised by Job worker as per GST requirements, Should it be composite Invoice containing (Material Y & Service Z) or different invoice needs to be issued for Material and Service.

AI Summary

Job work service: treat materials used by the job worker as part of the composite service unless title to goods transfers.
Circular guidance allows a job worker to use its own materials and treats those materials as part of the job work service, supporting a single invoice or challan inclusive of the materials when returning goods to the principal. However, if title to goods used by the job worker transfers during the process and the goods element becomes the principal supply, separate treatment as supply of goods may arise; factual determination of title transfer and principal supply is therefore determinative of invoicing and tax treatment.