Question ID :
36968
GST Rate
GST on Job Work,
“A” Sends his material for Job Work to “B”. B, while doing the process, adds his own material and completes the Job Work.
Can “B” charge only 18% GST for his service or he has to charge separately for materiel added at the appropriate rate applicable to such material.
Posted by
Ethirajan
on
Feb 08, 2019
Filed Under
GST
If the product rate is 18% then on total amount charged by him as it is a composite supply.
Posted by
Madhukar N Hiregange on
Feb 08, 2019
Answer ID :
76256
Generally, Its a Composite Supply (Natural Bundle) hence rate of Principle Supply (Job work) 18% shall apply.
But if the material supplied along with Job Work constitutes a mixed supply (Unnatural Bundle) , then there are two possible scenarios - (a) Material's value is separately mentioned then individual material wise tax rate. (b) Material's Value is clubbed with service charges then the Tax rate shall be the Highest rate among all goods/services supplied.
Posted by
Ashish Kumar Goyal on
Feb 11, 2019