Liability to issue invoice, time of supply and value of supply clearance from the job worker premises / place of business:
(i) Supply of job work services:
The job worker, as a supplier of services, is liable to pay GST, if he is liable to be registered under section 25 of the CGST Act. He shall issue an invoice at the time of supply of the services as determined in terms of section 13 read with section 31 of the CGST Act. The value of services would be determined in terms of section 15 of the CGST Act and 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.
It is clarified that the value of moulds and dies, jigs and fixtures or tools provided by the principal may not be included in the value of job work services provided its value has been factored in the price for the supply of such services by the job worker.
(ii) Supply of goods by the principal:
Since the supply is being made by the principal, it is clarified that the time, value and place of supply would have to be determined in the hands of the principal irrespective of the location of the job worker’s place of business/ premises. Further, the invoice would have to be issued by the principal. It is also clarified that in case of exports directly from the job worker’s place of business / premises, the LUT or bond, as the case may be, shall be executed by the principal.
(iii) Supply of waste and scrap generated during the job work:
The waste and scrap generated during the job work may be supplied by the registered job worker directly from the place of business or by the principal if job worker is not registered under GST.