TMI Blog2019 (5) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... lar No.38/12/2018 dtd. 26-03-2018 issued by CBEC, it is clarified that, in addition to the goods received from the principal, the job worker can use his own goods for providing the services of job work. The services are performed on physical inputs owned by units other than units providing the services. As such, they are characterized as outsourced portions of a manufacturing process or a complete outsourced manufacturing process. Under job work services, the output is not owned by the unit providing this service. Therefore, the value of the services is based on the service charge paid, not the value of the goods manufactured. The job worker, as a supplier of services, is liable to pay GST if he is liable to be registered. He shall issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a mixing mill The petitioner cut the materials in desired size and mixing the material with molten rubber compound, Accordingly, the molten rubber compound and coir materials are fused / vulcanized perfectly with the aid of hydraulic press. Thereafter the edges are cut for finishing and the finished product like lubber backend mat of coir, polypropylene of felt will be delivered to the principal. The petitioner requested advance ruling on the activities like, (i) Whether the process and treatment carried out on the goods belonging to the principal and made available by the principal amounts to job work? (ii) Whether the activity of job work carried out on goods falling under Chapter heading 5702 and 5703 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, the value of the services is based on the service charge paid, not the value of the goods manufactured. The job worker, as a supplier of services, is liable to pay GST if he is liable to be registered. He shall issue an invoice at the time of supply of the services. The value of services would include not only the service charges but also the value of any goods or services used by him for supplying the job work services, if recovered from the principal. The materials supplied for execution of job work are falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975. The materials like carpets, coir etc. are supplied by the principal for executing job works along with moulds in the required desi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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