Sending Goods for Combi-Packing – Job Work or Supply?

In re Butterfly Gandhimathi Appliances Limited (GST AAR Tamil Nadu)

This article explores a case study regarding the interpretation of Goods and Services Tax (GST) in India, specifically concerning the activity of sending finished goods for combination packing (combi-packing) by another registered vendor. The case involves Butterfly Gandhimathi Appliances Limited (BGAL), a manufacturer of domestic appliances, seeking clarification on whether this activity constitutes a taxable supply or job work under GST.

Background:

BGAL manufactures various appliances like pressure cookers, mixers, and grinders. They plan to send finished goods they manufacture to a vendor who will pack them in combination with another GST-paid product procured by the vendor. This combi-pack will then be returned to BGAL for further taxable supply.

Applicant’s Interpretation:

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