Job Work under gst

[VIGNESH]

Sir. Kindly clarrify .My client Mr.A is getting job work from jewellery shop for making jewellery ornaments. Mr.A receives the Raw Gold (24carat) and then he distributes the same to various job workers under him and make the finished product and Mr.A supplies jewellery to the shop. kindly clarrify the GST rate apeplicable to the above work

1. when Mr.A does not carry on any process at his end, he distributes the job received to various other job workers

2. When Mr.A converts the raw gold 24 carat to 22 carat by adding copper and then distributed the job work to other job workers

AI Summary

Job work status governs when subcontracting or metal conversion constitutes job-worker responsibilities and affects supply characterisation.
Whether a person handling another's goods and arranging or performing processing is a job worker turns on ownership, the nature of the processing, and who remains responsible for the work; subcontracting physical execution does not preclude job-work status if the intermediary undertakes the treatment on goods belonging to another registered person. Conversion that changes material classification is an operative processing activity relevant to supply characterisation, but if the intermediary acquires ownership or receives goods for consideration the transaction may instead be a purchase and resale.