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Job work includes repairing, Goods and Services Tax - GST

Issue Id: - 114454
Dated: 4-1-2019
By:- dharti shah

Job work includes repairing


  • Contents

Hi,

My client is a retailer of watches, The customers get their watches for repairing. Client sends them for repairing to other vendors. My question is whether it can be considered as job work. Please note : the client (principal ) is not a manufacturer.

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Showing Replies 1 to 6 of 6 Records

Page: 1


1 Dated: 4-1-2019
By:- KASTURI SETHI

 

Dear Querist,

No. Both 'job work' and 'repair service of goods' are entirely different concepts under GST. Repair of goods (watches) fall under GST Tariff Code 9987 (998722) and job work of goods falls under HSN 9988. Actually job work is completion of goods by way of manufacturing activity. Mainly it is concerned with manufacture of goods. Job work is a service in GST Act.

Job work [Section 2(68) of CGST Act, 2017]. - “Job work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly.

Whether ' Any treatment or process' is to be termed as job work or not , depends upon facts and circumstances of each case but in the situation explained by you, it is not job work.


2 Dated: 4-1-2019
By:- YAGAY andSUN

We endorse the view of Kasturi Sir.


3 Dated: 4-1-2019
By:- KASTURI SETHI

M/s.YAGAY AND SUNS,

Thank you, Sir.


4 Dated: 4-1-2019
By:- dharti shah

Dear Kasturi

Thank you for your clarification.


5 Dated: 5-1-2019
By:- Abhishek Sethi

Job work can only be done on behalf of registered persons. Assuming Customers who come over for repair are unregistered (likely scenario), service from Client to Customer shall be treated as repair service only.

In instant case, goods belonging to Customer are given to another vendor by Client - thus question may arise as to what is the relevance of word 'belonging' in definition of job work - Will it mean legal ownership or can cover physical possession also? If answer is limited to former, then such transaction to be treated as repair service only.

If qualified as job work, need to comply with GST ITC 04 as well as E-Way Bill

Kind regards,
Abhishek


6 Dated: 5-1-2019
By:- KASTURI SETHI

The word, 'belonging' in the definition of job work stands for legal ownership.


Page: 1

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