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JOB WORK VS MAKING CHARGES in GST how to consider

16 February 2023

dear CA club India,

what is mean by job work and making charges in GST, could you please give me an example for this

job work versus making charges how to consider in GST whether it is a expenses or supply of sales

please give me a case examples about this

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174741 Points)
Replied 16 February 2023

Supply of service.... generally taxable at 18% rate, unless specified otherwise.

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MPR Sanjay Kumar (3109 Points)
Replied 17 February 2023

@ Honourable Dhirajlal Lal rambhia sir thanks,

Could you please give me a meaning of this JOB work and making charges and also some examples x and y for my better practical understanding

Humble request sir

prasad Nilugal ( GST Practitioner & Accounts ) (14658 Points)
Replied 17 February 2023

Job work is done mostly in Manufacturing and trading company, like on Raw Material, semi Finished goods, were sent to job worker for further process and return back to principal with in time limit.
On the contrary making charges are charged for making Gold ornaments, Gold Jewellery , Making charges are for processing of Gold . It is cost of the process involved in producing and designing each peace of Gold Jewellery that you purchase.