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Question 7 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. Can a person take input tax credit without payment of consideration for the supply along with tax to the supplier? Ans. Yes, the recipient can take ITC. But he is required to pay the consideration along with tax within 180 days from the date of issue of invoice. This condition is not applicable where tax is payable on reverse charge basis. – Statutory Provisions, Acts, Rules, Regul

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Question 8 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. What would happen of the ITC taken by the registered person if he has not paid the consideration along with tax within 180 days from the date of issue of invoice? Ans. The amount of ITC would be added to output tax liability of the person. He would also be required to pay interest. However, he can take ITC again on payment of consideration and tax. – Statutory Provisions, Acts, Rul

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Question 9 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. Who will get the ITC where goods have been delivered to a person other than taxable person ( bill to – ship to scenarios)? Ans. It would be deemed that the registered person has received the goods when the goods have been delivered to a third party on the direction of such taxable person. So ITC will be available to the person on whose order the goods are delivered to third person.

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Question 10 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. What is the time limit for taking ITC and reasons therefor? Ans. A registered person cannot take ITC in respect of any invoice or debit note for supply of goods or services after the due date for furnishing the return under section 39 for the month of September following the end of financial year to which such invoice/invoice relating to debit note pertains or furnishing of the

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Question 3 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 3 – Q 3. Does input tax includes tax (CGST/IGST/SGST) paid on input goods, input services and

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Question 4 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. Is credit of all input tax charged on supply of goods or services allowed under GST? Ans. A registered person is entitled to take credit of input tax charged on supply of goods or services or both to him which are used or intended to be used in the course or furtherance of business, subject to other conditions and restrictions. – Statutory Provisions, Acts, Rules, Regulations, Taxa

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Question 5 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. What are the conditions necessary for obtaining ITC? Ans. Following four conditions are to be satisfied by the registered taxable person for obtaining ITC: (a) he is in possession of tax invoice or debit note or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both; (c) the supplier has actually paid the tax charged in respect of th

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Question 15 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 15 – Q 15. Is it compulsory that job work provisions should be followed by the principal? Ans. No. The principal can send the inputs or capital goods after payment of GST without following the special procedure. In such a case, the job-worker would take the input tax credit and supply back the processed goods (after completion of job-work) on payment of GST. – Statutory Provisions, Acts, Rules, Re

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Question 16 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. Should job worker and principal be located in same State or Union territory? Ans. No this is not necessary as provisions relating to job work have been adopted in the IGST Act as well as in UTGST Act and therefore job-worker and principal can be located either is same State or in same Union Territory or in different States or Union Territories. – Statutory Provisions, Acts, Rules, Regul

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Question 1 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 10. Input Tax Credit Q 1. What is input tax? Ans. Input tax means the central tax (CGST), State tax (SGST), integrated tax (IGST) or Union territory tax (UTGST) charged on supply of goods or services or both made to a registered person. It also includes tax paid on reverse charge basis and integrated tax goods and services tax charged on import of goods. It does not include tax paid und

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Can GST paid on reverse charge basis be considered as input tax? – Question 2 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. Can GST paid on re

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Who is responsible for the maintenance of proper accounts related to job work? – Question 13 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 13 – 13. Who is resp

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Question 14 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 14 – Q 14. Are the provisions of job work applicable to all categories of goods? Ans. No. The provisions relating to job work are applicable only when registered taxable person intends to send taxable goods. In other words, these provisions are not applicable to exempted or non-taxable goods or when the sender is a person other than registered taxable person. – Statutory Provisions, Acts, Rules, R

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Question 9 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. What happens when the inputs or capital goods are not received back or supplied from the place of business of job worker within prescribed time period? Ans. If the inputs or capital goods are not received back by the principal or are not supplied from the place of business of job worker within the prescribed time limit, it would be deemed that such inputs or capital goods had been supplied

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Question 10 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. Some capital goods like jigs and fixtures are non -usable after their use and normally so

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Question 11 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 11 – Q 11. What would be treatment of the waste and scrap generated during the job work? Ans. The waste and scrap generated during the job work can be supplied by the job worker directly from his place of business, on payment of tax, if he is registered. If he is not registered, the same would be supplied by the principal on payment of tax. – Statutory Provisions, Acts, Rules, Regulations, Taxatio

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Whether intermediate goods can also be sent for job work? – Question 12 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 12 – Q 12. Whether intermediate goods can

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Question 6 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. Can the principal supply the goods directly from the premises of the job worker without bringing it back to his own premises? Ans. Yes. But the principal should have declared the premises of an unregistered job worker as his additional place of business. If the job worker is a registered person then goods can be supplied directly from the premises of the job worker. The Commissioner may al

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Question 7 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. Under what circumstances can the principal directly supply goods from the premises of job worker without declaring the premises of job worker as his additional place of business? Ans. The goods can be supplied directly from the place of business of job worker without declaring it as additional place of business in two circumstances namely where the job worker is a registered taxable person

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Question 8 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. What are the provisions concerning taking of ITC in respect of inputs/capital goods sent to a job worker? Ans. Principal shall be entitled to take credit of taxes paid on inputs or capital goods sent to a job worker whether sent after receiving them at his place of business or even when such the inputs or capital goods are directly sent to a job worker without their being first brought to

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Is a job worker required to take registration? – Question 3 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 3 – Q 3. Is a job worker required to take registratio

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Question 4 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. Whether the goods of principal directly supplied from the job worker s premises will be included in the aggregate turnover of the job worker? Ans. No. It will be included in the aggregate turnover of the principal. However, the value of goods or services used by the job worker for carrying out the job work will be included in the value of services supplied by the job worker. – Statutory Pr

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Question 5 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. Can a principal send inputs and capital goods directly to the premises of job worker without bringing it to his premises? Ans. Yes, the principal is allowed to do so. The input tax credit of tax paid on inputs or capital goods can also be availed by the principal in such a scenario. The inputs or capital goods must be received back within one year or three years respectively failing which

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Question 1 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 9. Job Work Q 1. Q 1. What is job work? Ans. Job work means undertaking any treatment or process by a person on goods belonging to another registered taxable person. The person who is treating or processing the goods belonging to other person is called job worker and the person to whom the goods belongs is called principal . This definition is much wider than the one given in Notification No. 2

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Question 2 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. Whether goods sent by a taxable person to a job worker will be treated as supply and liable to GST? Why? Ans. It will be treated as a supply as supply includes all forms of supply such as sale, transfer, etc. However, the registered taxable person (the principal), under intimation and subject to such conditions as may be prescribed send any inputs and/or capital goods, without payment of t

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