Jobwork

This query is : Resolved 

14 July 2017 Dear Sir / Madam,
We are manufacturer of automobile components and our company located in Tamilnadu. We send our semi finished goods to our job worker for Plating purpose (He buy the gold and to the plating) before GST our job worker charge 2 % CST.
Now we came to job work is exempt from GST it is right ???. If wrong what is the IGST %

14 July 2017 Job work is not exempt in GST. There will be GST on job work charges for which you will get credit. In your case it will be IGST.

14 July 2017 Dear Sir,
Thank you for your answer

CGST Act Section 143 say's Job work is exempt from GST am i right sir ...


14 July 2017 Do not interpret Sec. 143 in this sense that job work is exempt. Logically, If Principal is sending goods to Job-worker for job work then it is a supply and GST should be charged. Sec. 143 says that there is no need to charge GST on this transaction if intimation is given as per the rules.


14 July 2017 Do not interpret Sec. 143 in this sense that job work is exempt. Logically, If Principal is sending goods to Job-worker for job work then it is a supply and GST should be charged. Sec. 143 says that there is no need to charge GST on this transaction if intimation is given as per the rules.




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