Author: admin_gst

Migration to GST- Mandatory requirement of PAN for all including government departments for registrations
PUBLIC NOTICE No. 07/2017 Dated:- 10-6-2017 Trade Notice
GST
OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX
7th FLOOR, TRADE CENTRE, BUNTS HOSTEL ROAD, MANGALURU-575 003
C. No. IV/16/01/2017 Tech.
Date: 10.06.2017
PUBLIC NOTICE No. 07/2017
Sub: – Migration to GST- Mandatory requirement of PAN for all including government departments for registrations- Reg.
As you are aware the GST regime is proposed to be introduced w.e.f 1St July, 2017. Section 139 of the GST Act, 2017 provides for migration of existing tax payers to GST. In this regard attention is invited to Section 25(6) of the said Act which stipulates t

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Exhibiton in GST Formats
Query (Issue) Started By: – SANTOSH TIWARI Dated:- 9-6-2017 Last Reply Date:- 11-7-2017 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Experts,
Please suggest ,
1.What rate will be charge on Exhibiton?
2. If exhibition is in outside the state, how will we send material for exhibition, if we received order for exhibiton with material ?
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
1) The rate of service tax leviable on Exhibition is 18%.
2) Wh

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The Union Finance Minister to chair the 16th Meeting of the GST Council on Sunday, 11th June, 2016
GST
Dated:- 9-6-2017

The Union Minister for Finance, Defence and Corporate Affairs, Shri Arun Jaitley will chair the 16th Meeting of the GST Council scheduled to be held on Sunday, 11th June, 2017 at Vigyan Bhavan in the national capital. The one day Meeting will also be attended among others by the Finance Ministers of different States and UTs (having elected assembly) being the memb

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GST Council constitutes 18 Sectoral Groups for smooth roll-out of GST
GST
Dated:- 9-6-2017

As decided in the 14th Meeting of the GST Council held on 18th-19th May, 2017 in Srinagar, J&K, 18 Sectoral Groups have been constituted representing various sectors of the economy in order to ensure smooth roll-out of GST. These 18 Sectoral Groups representing various sectors of the economy and containing Senior Officers of the Centre and the States are being set-up to ensure smooth implementation of GST by timely responding to the issues and problems of their respective Sector(s).
In fact, they are being with the following objectives:
i) Interact and examine representations received from trade and industry associations/bodies of thei

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rincipal Secretary, Chhattisgarh
4.
IT & ITes
M. Vinod Kumar, Chief Commissioner, CBEC
Ms. Smaraki Mahapatra, CCT, West Bengal
5
Transport & Logistics
J.M. Kennedy, ADG, DRI, CBEC
Ms. Sujatha Chaturvedi, Pr. Secretary, Bihar
6
Textiles
Yogendra Garg, Commissioner, CBEC
Ms. Mona Khandhar, Secretary (EA), Gujarat
7
MSMEs (incl. job work)
Manish Sinha, Commissioner, CBEC & GST Council
H. Rajesh Prasad, Commissioner, VAT, Delhi
8
Oil & Gas (upstream & downstream)
P.K. Jain, Chief Commissioner, (AR), CBEC
Anurag Goel, CCT, Assam
9
Gems & Jewellery
Reyaz Ahmad, Director (TRU)
Dr. P.D. Vaghela, CCT, Gujarat
10
Services received and provided by Government
D.P. Nagendra Kumar, Pr. Commissioner, CBEC
Arun Mishra, Additiona

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J-K gov summons legislature for special session on GST
GST
Dated:- 9-6-2017

Srinagar, Jun 8 (PTI) – Jammu and Kashmir Governor N N Vohra today summoned the state legislature for a special session on June 17 to discuss the draft GST legislation approved by the state government.
Yesterday, the state government had approved the draft legislation and expressed its desire to hold a special assembly session to discuss the specific issue of extension of GST to the state.
While the GST bill passed by the Parliament is not applicable to Jammu and Kashmir in its present form, the state has brought a modified version of the legislation that would neither infringe upon the its special status under Article 370 of the constitution, nor co

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GST TAX RATE FOR MACHINED CASTING
Query (Issue) Started By: – Suresh Babu Dated:- 9-6-2017 Last Reply Date:- 9-6-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Please suggest the GST tax rate for machined casting HSN code is 87082900 for interstate and intraststate
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
The rate of GST is 28% for intra state supplies. For inter state supply the tax is payable under IGST Act and the same is yet to be notified.
Discussion Forum –

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GST Rates on Pharmaceuticals Products and Diagnostic kits
Query (Issue) Started By: – RAHUL KHAKHRA Dated:- 9-6-2017 Goods and Services Tax – GST
GST
We have query on GST Rate Schedule for goods (18th May-2017) for Chapter 30 (Pharmaceutical products). Against Ch.30, the GST tariff has been specified at 5% for the the products i.e- "Drugs or medicines including their salts
and esters and diagnostic test kits, specified in List 3 or List 4 appended to the notification No.12/2012-C

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Freight and Packing charges
Query (Issue) Started By: – Suresh Babu Dated:- 9-6-2017 Last Reply Date:- 11-7-2017 Goods and Services Tax – GST
Got 3 Replies
GST
If I raise the sales invoice its come packing charges and freight amount. It is also calculate for GST or only the basic value to be calculated
Reply By PAWAN KUMAR:
The Reply:
Dear Sir,
As per my view, gst would also payable on packing charges and freight related to supply of goods.
Reply By Himansu Sha:
The Reply:
for

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GST ON PETROLEUM PRODUCTS – Need for review of of the Statutory Provisions
By: – Sasidharan Gopalakrishnan
Goods and Services Tax – GST
Dated:- 9-6-2017

When GST is implemented, the Central Excise Duty (CENVAT) leviable under the Central Excise Act 1944 (CE Act) will get replaced by CGST under the CGST Act 2017 (CGST Act) for all commodities including petroleum products falling under Chapter 27 of HSN, except for the five specified petroleum products, excluded from GST for the time being..
These five petroleum products viz. Petroleum Crude, Motor Spirit commonly known as Petrol, High Speed Diesel, Aviation Turbine Fuel and Natural Gas have temporarily been kept out of GST and GST Council shall decide the date from which they shall be included in GST. (Ref: Q.6 of FAQ on GST (2nd Edition) dated 31.03.2017 )
This is sought to be achieved through the following statutory changes::
* Sec 9 of the CGST Act which authorizes the levy & collection of CGST contain the foll

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ral Excise Tariff Act 1985, is amended & replaced by new section Sec 3 (vide The Taxation Laws Amendment Act 2017).
This new Sec 3 of the CE Act authorizes levy & collection of Duty of Excise (CENVAT) at rates set forth in the Fourth Schedule, The Fourth Schedule which is inserted in CE Act through this amendment, is the extract of the existing First Schedule of Central Excise Tariff Act 1985, but containing only those items for which CENVAT is proposed to be continued.
The GST Rate Schedule for Goods, finalized by the GST Council, prescribes the rates of GST for all commodities grouped under Chapter nos 1 to 98 of HSN classification. Out of the five specified petroleum products Petroleum Crude falls under HSN Heading 2709, Petrol,Diesel and ATF fall under HSN Heading 2710 along with other Petroleum Oils & Oils obtained from Bitumenous minerals, AND Natural Gas falls under HSN Heading 2711 along with other Petroleum Gases & other Gasesous Hydrocarbons. In the GST Rate Schedule for

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However while mentioning goods under HSN Heading 2711, Natural Gas has not been expressly excluded. This indicates a GST liability at prescribed rates for Natural Gas alongwith other gases falling under HSN Heading 2711.
* Under the newly inserted Fourth Schedule of Central Excise Act 1944, which seeks to prescribe cenvat rates only for items sought to be retained under CENVAT , the following entries appear:
2710
Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils
– Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the prep

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.
…..
2710 19 50
Fuel oil
Kg.
…..
2710 19 60
Base oil
Kg.
…..
2710 19 70
Jute batching oil and textile oil
Kg.
…..
2710 19 80
Lubricating oil
Kg.
…..
2710 19 90
Other
Kg.
…..
2711
Petroleum gases and other gaseous hydrocarbons
– Liquefied:
2711 11 00
Natural gas
Kg.
14%
2711 12 00
Propane
Kg.
…..
2711 13 00
Butane
Kg.
…..
2711 14 00
Ethylene, propylene, butylene and butadiene
Kg.
…..
2711 19 00
Other
Kg.
…..
– In gaseous state:
2711 21 00
Natural gas
Kg.
14%
2711 29 00
Other
Kg.
…..
It may be seen that , in the Fourth Schedule , under HSN 2710 12 Light oils & Preparations, all the types of Motor Spirits are listed under a common heading viz. Motor Spirit (commonly known as Petrol). This is not technically correct since all categories of products defined as “Motor Spirits” as per the Chapter Notes/Supplementary Notes under Chapter 27 are not com

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T and CENVAT would become simultaneously chargeable on Motor Spirit other than Petrol, which includes SBPS (2710 12 11) and Naphtha (2710 12 19), among others. It is worth mentioning in this connection that the existence of Motor Spirit under distinct categories other than Petrol, has already been recognized under the Central Excise Tariff by providing for separate rates of Duty for Motor Spirit commonly known as Petrol , Naphtha and SBPS(other than Petrol & Naphtha), the first two vide separate effective rates /exemptions prescribed in notification issued under Sec. 5A and the the last one by the Tariff Entry itself..
Similar is the case of Light Oils & Preparations other than Motor Spirit, falling under 2710 12 20-Natural Gasolene Liquid (NGL) and 271012 90- Others (other than NGL) for which CENVAT rates have been mentioned in Fourth Schedule, even though they are covered under GST. Here also Cenvat rates mentioned in the Fourth Schdeule need to be deleted or fully exempted under s

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at.
* GST Rate schedule for Goods finalized by GST council prescribes GST rates for all petroleum products falling under HSN Headings 2710 , 2711, 2712 and 2713 other than Petrol, Diesel and ATF. At the same time, amended Central Excise Law (Fourth Schedule to the Act), prescribes Cenvat Rates not only for Petroleum Crude (Nil Rate), Petrol, Diesel, ATF and Natural Gas, but also for some other petroleum products and intermediates which will fall under HSN Headings 2710 12 11 , 2710 12 12 , 2710 12 13 , 2710 12 19, 2710 12 20 and 271012 90.. Thus Some Petroleum Products & intermediates falling under 2710 12 11 , 2710 12 12 , 2710 12 13 , 2710 12 19, 2710 12 20 and 271012 90, will be simultaneously liable for GST and Cenvat .- examples are SBPS (2710 12 11, Naphtha (2710 12 19) and Reformat (2710 12 19)
* With the above provisions in the GST Law and Central Excise Law co-existing, both GST and Cenvat would be chargeable on Natural Gas and some other Petroleum Products and intermediat

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Burden of tax on Heena Manufacturers and Traders under GST
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 9-6-2017

The GST Council at its meeting on May 18, 19 has evolved a consensus on GST rates for goods and services, leading us closer to July 1 implementation. The underlying objective of rate declaration was clear for some time, which is to maintain the current effective indirect tax burden to control inflation and avoid surprises. The government has kept a large number of items under 18% tax slab. The government categorised 1211 items under various tax slabs.
The products falling under tariff heading chapter 3305 will be charged at maximum rate of 28%. These are cosmetics items and covers hair dyes also. The r

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a powder and paste cleared from 01.01.2007 to 01.03.2013. Apart from the exemption from levy of central excise duty, the heena products also enjoy exemption from levy of taxes levied by the State Government.
This levy of tax on Heena powder and Paste under GST contradicts the underlying objective of rate fitment i.e. to maintain current effective indirect tax burden under GST. Though Government Officials always gave intimation that there will be curtailment in present exemptions and abatements applied on goods and services but this is a very harsh provision on Heena Manufactures and Traders as their product is very low priced and ultimately paying such large amount of tax under GST will make it difficult to survive under new indirect taxat

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Constitution of GST Facilitation Cell – regarding
Trade Notice No. 27/AM16 – Pune Dated:- 9-6-2017 Trade Notice
DGFT
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
OFFICE OF THE JOINT DIRECTOR GENERAL OF FOREIGN TRADE,
C BLOCK, PMT COMMERCIAL COMPLEX, SHANKARSETH ROAD,
SWARGATE, PUNE – 411 037
Tel. No. 020-24442783/24449598
Fax. No. 020-24441577
Email: pune-dgft@nic.in
Trade Notice No. 27/AM16 dated 09.06.2017
Sub: Constitution of GST Facilitation Cell – regarding
To

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Credit Transfer Document
Query (Issue) Started By: – SUSHIL GOYAL Dated:- 8-6-2017 Last Reply Date:- 10-6-2017 Goods and Services Tax – GST
Got 4 Replies
GST
What is Credit Transfer Document, as an amendment in Cenvat Credit Rules is proposed by GST Council at its meeting held on 3.6.2017.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
The balance of cenvat credit as per your return filed under existing law prior to the appointed date for implementation of GST Law will be the document on the basis of which you will be allowed to transfer the balance of credit available with you to electronic credit ledger. The procedure for such transfer is given in rule 1 of GST – TRANSITIONAL PROVISIONS – Final Rules 04-06-2017.
Reply

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GST on renting of Immovable property by Educational Inst (12AA) and its affiliates
Query (Issue) Started By: – Amit Choudhary Dated:- 8-6-2017 Last Reply Date:- 11-6-2017 Goods and Services Tax – GST
Got 1 Reply
GST
First : Educational institute reg u/s 12AA rented immovable property to a company for residential dwelling use . Second : Company run hostel and collect fees for students of school/ college. What will be the Service tax liability of 1. Educational institute 2. Company ta

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Ducument issued by unregistered person at the time of supply
Query (Issue) Started By: – Narendra Soni Dated:- 8-6-2017 Last Reply Date:- 13-6-2017 Goods and Services Tax – GST
Got 5 Replies
GST
Dear experts,
Please suggest what type of document (Tax invoice or Bill of Supply or Debit note or Payment voucher etc…..) shall be issued by an UN REGISTERED supplier at the time of supply in GST.
Reply By Vipul Singh:
The Reply:
Bill of Supply
Reply By Narendra Soni:
The Reply:
Sir,
Bill of supply will be issued by registered person only, in the following two situations:-
1 – exempted supplies made by him
2.Composition levy supplies .
Hence an unregistered person can not issue bill of supply, please see section 31(3)(c).
R

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Daily Consumer goods being used by the common man among others to become cheaper after GST
GST
Dated:- 8-6-2017

Implementation of Goods and Services Tax (GST) on the following items will have zero rate after the GST Law comes into force on 1st July, 2017.
As a result of which these items will be available at cheaper rates to the common man at large:
1) Foodgrains and flours
a. Cereals
b. Pulses
c. Atta
d. Maida
e. Besan
Except branded ones with registered trade mark in

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The Union Minister of Finance, Defence and Corporate Affairs, Shri Arun Jaitley thanks all the political parties for their cooperation and contribution in making it possible to launch GST with effect from 1st July, 2017;
GST
Dated:- 8-6-2017

The Union Minister of Finance, Defence and Corporate Affairs, Shri Arun Jaitley thanks all the political parties for their cooperation and contribution in making it possible to launch GST with effect from 1st July, 2017;
Asks the Members of Parliament (MPs) and MLAs of different political parties to equip themselves with the finer points of the Single Tax GST regime in order to explain the same to the people at large.
The Union Minister of Finance, Defence and Corporate Affairs, Shri Ar

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s letter to the Presidents of the different political parties that GST Council in which all the States/UTs Governments are represented have met 15 times in the last eight months and have approved all the Draft Laws and Rules and GST rates for all the commodities.
The Union Finance Minister Shri Jaitley further said that GST is the most important tax reform since independence and is going to substantially ease doing of business in India which will promote new investment and contribute to the overall GDP growth. Shri Jaitley further said that GST will also help in removing the cascading effect of taxation and will give relief to the common man by leading to reduction in prices especially of essential consumer goods. The Finance Minister also

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BALANCE CREDIT ON SERVICE TAX
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 8-6-2017 Last Reply Date:- 9-6-2017 Goods and Services Tax – GST
Got 1 Reply
GST
While Implemetation of GST, availing balance credit on service tax we have to disclose in last return to carried forwards in GSTN Server.
As per Service tax Act, Credit is eligible after making payment to service provider.
can we issue only cheque in name of service provider (Not present in their Bank which will do

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Transaction value on stock trfr to depot
Query (Issue) Started By: – Vishnu Dutt Gupta Dated:- 8-6-2017 Last Reply Date:- 18-6-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Sir,
If we are doing stock transfer from manufacturing plant to depot's, In GST regime how much value we consider.
Actual value
Cost +10%
90% of value
Rgds,
MJ
Reply By Himansu Sha:
The Reply:
In my view, another option is there, where the gst is available as credit, the value declared in t

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GST – IGST / CGST / SGST / UTGST – Account Policy
Query (Issue) Started By: – Suresh Babu Dated:- 8-6-2017 Last Reply Date:- 8-6-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Please explain the accounting policy (Creating Account head and link details) of IGST / CGST / SGST / UTGST.
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
In respect of GST, all transactions are to be done through the Common Portal by means of Electronic Cash Ledger, Electronic Liability Register and Elect

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GST Returns
Query (Issue) Started By: – Narendra Soni Dated:- 8-6-2017 Last Reply Date:- 9-6-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Experts,
We have three manufacturing units in a state covered under single GST registration. Products of all units are similar say plastic products.
Kindly suggest whether single return is required to submit or unit wise returns are required to submit in GST.
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
Single return is enough.
Rep

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modification in GST NO OR ADD NEW LOCATION
Query (Issue) Started By: – vijay sharma Dated:- 8-6-2017 Last Reply Date:- 8-6-2017 Goods and Services Tax – GST
Got 3 Replies
GST
Sir,
I am a transporter i had get my provisional id for Maharashtra can we do business from any other state with the same id(Maharashtra id)
For example we can do business from Haryana, Punjab,Gujrat ect. with the same id of Maharashtra or we have to take it state wise
If it is state wise than how can we add

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E Way Bill
Query (Issue) Started By: – Suresh Babu Dated:- 8-6-2017 Last Reply Date:- 8-6-2017 Goods and Services Tax – GST
Got 2 Replies
GST
IN E-WAY BILL PART A OF GST INS-01 AND PART B OF GST INS-01 BOTH WE SHOULD FILLED OR EITHER PARTY A OR B.
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
Both should be filed by the registered person – Party A. Part A of GST INS-01 is to be filled by Party A before commencement of movement. Part B is to be filled after the goods are transported

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GST on Ocean freight (Sea and Air) paid for Export & import
Query (Issue) Started By: – Narendra Soni Dated:- 8-6-2017 Last Reply Date:- 8-8-2017 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Experts,
Please confirm, whether GST is applicable on ocean freight paid by a manufacturer to shipping line or to his agent or to freight forwarder located in India for (a) Export made from India and for (b) Import made in India by sea and by air.
An immediate response is highly appreci

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GST on JOB work Charges
Query (Issue) Started By: – Narendra Soni Dated:- 8-6-2017 Last Reply Date:- 14-11-2017 Goods and Services Tax – GST
Got 25 Replies
GST
Dear Expert,
Please suggest whether GST is applicable on Job Work Charges raised by Job worker.
Urgent reply is appreciated
Reply By MUKUND THAKKAR:
The Reply:
labour charges (job work charges) is taxable under GST. if job worker is non registered than you have to pay the tax under RCM. and job worker is registered than he has pay to tax under GST. On job work charges.
Reply By KASTURI SETHI:
The Reply:
I support the views of Sh. Mukund Thakkar, Sir. Job work is taxable service under GST.
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
In this regard refer Section 143 of the CGST Act which describes the job work procedure.
Reply By Narendra Soni:
The Reply:
Thanks Sir,
But, suppose a manufacturer has two units say A & B, located in same city(state) having single(same) PAN no and having single registration in

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son.
Requested to Mukund Sir, Marriappan Sir, Kasturi Sir, Ganeshan Sir,Rajagopalan Sir…Sir….., please suggest………
Reply By MUKUND THAKKAR:
The Reply:
narendra Ji,
Final product of both units are same?
Reply By KASTURI SETHI:
The Reply:
Sh.Soni Ji,. I am not studying GST. I shall study only after the date is confirmed. Still there is doubt about the date of implementation. Transporters and Bank Associations are requesting the Govt to postpone till 1.9. 2017. Let us wait for. No adverse effect till the date of implementation of GST.
Reply By Narendra Soni:
The Reply:
Thanks Mukund Sir,
Both the units say A & B are manufacturing same products. Semi products say Tap and Fabric of unit 'A' is transferred in unit "B" under job work challan for making Bags,and the Bags has been exported directly from unit "B" (Permission form central excise has been taken in existing law). OR returned back to unit "A" if not exported. Job work challan i

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GST this concept is no longer relevant. Manufacturing is no longer taxable events. Its supply that that is taxable event. In GST you are registered state wise and not factory wise. You need two GSTIN when you say two registered person.
Reply By Narendra Soni:
The Reply:
Dear Mukund Sir,
Should we use Tax invoice of different series or Job work challan at the time of movement of goods from one unit to another unit.If we use Invoice than we have to charge GST at the time of movement between inter unit processing of RM/semi finished goods.
Kindly confirm your expert views.
Reply By MUKUND THAKKAR:
The Reply:
Should we use Tax invoice of different series or Job work challan at the time of movement of goods from one unit to another unit.If we use Invoice than we have to charge GST at the time of movement between inter unit processing of RM/semi finished goods.
Need not raise the Tax invoice only job work challan is enough for the movements. which will be serially is must. you need

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ng) in to tablets/capsules/syrup we shall charge some amount for that. That shall include the processing, labour and also certain material which is required to be used to achieve final product that is tablet/capsule/syrup. As the main material is supplied by Principal and take back the finished product (definitely within an year) does Sec 143 is applied and no tax is charged or any other section specifies this and brings to GST to be charged. Kindly clarify.
Reply By KASTURI SETHI:
The Reply:
In my view, Section 143 is applicable. Both (job worker and jobbee) are distinct persons. Rest depends upon the terms and conditions of the agreement between both.
Reply By Radhakrishna S:
The Reply:
Sir,
I am not able to understand clearly about applicability of GST for Job work. As per sec 143 a principal can send inputs (some material I mean) to a Job worker under intimation and can bring back without paying tax within an year and within 3 year for capital goods. Here exactly I am confused

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r without paying tax and bring back without paying tax. within a period of 1 year. As we are a pharmaceutical manufacture we under take the job converting the ingredient or material supplied by another Pharmaceutical (which is called Loan Licensing) in to tablets/capsules/syrup we shall charge some amount for that. That shall include the processing, labour and also certain material which is required to be used to achieve final product that is tablet/capsule/syrup. As the main material is supplied by Principal and take back the finished product (definitely within an year) does Sec 143 is applied and no tax is charged or any other section specifies this and brings to GST to be charged. Kindly clarify.
Mr. Radhakrishna,
As per Schedule II, your activity of processing of other's goods is supply of service. Threshold exemption of ₹ 20 lakhs is applicable on your conversion charges+ cost of any material used by you. After that, you are liable to obtain GST registration and pay th

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ly:
In my opinion, in stead of opting for job work, you can supply RM/Inputs on payment of GST to Jobworker and subsequently after processing jobworker can supply the final jobworked product on payment of GST which will be inclusing of jobwork charges. But, in this case, the jobworker must get registered under GST. In case jobworker is not registered, exemption from payment of GST has been granted to principle supplier and not jobworker. Jobworker has to charge GST on his service of Job work which will be available as credit to principle supplier.
Reply By MohanLal tiwari:
The Reply:
One of our Public sector customer is supplying used & rejected machinery part on job work basis for supply of fresh machinery part (castings) in job work basis. To manufacture fresh machine part (castings), few other raw materials are to be required to be used.
Please advise if such manufacturing activities can be done under job challan.
Reply By Ganeshan Kalyani:
The Reply:
GST is not applicable on

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Provisions for supply of Goods to Job Worker under CGST Act,2017
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 8-6-2017

First of all, one need to understand the definition of Job work under Revised GST law . After that it will be easier to understand the provision relating to supply of goods to job worker . Goods either input or capital goods can be directly send to Job worker and supply of input can be directly make from job worker' place subject to the following provisions provided in Section- 143 of the Revised GST Law.
Definition as per Section – 2[68] of Revised MGL.
“JOB WORK” means any treatment or process by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly”
It means the provision of job work shall be applicable if the goods are received from Registered Person. Otherwise these provision of S. 143 is not applicable.
Provision for supply of goods to Job worker
1. Registered Pe

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otified by commissioner in this behalf.
2. The onus of prove for accountability of input and or capital goods shall be of Principal.
3. Where the inputs sent for job work are not return to principal after job work or otherwise within period of one year being sent out , it shall be treated as supply to job worker on the day of input sent for job work.
4. Where the capital goods other than mould and dies, jigs and fixture or tool, sent for job work are not return to principal after job work or otherwise within period of three year of being sent out , it shall be treated as supply to job worker on the day of capital goods sent for job work.
5. Job worker may supply the waste or scrap generated from job work directly from his place of business on payment of taxes, if he is registered, otherwise by principal, if job worker is not registered.
Related Provisions
Section
Particulars
Remarks
Sec. 2[68]
Definition
Undertaking any treatment or process
Sec. 19
Taking ITC In respect o

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ed person who send goods for job work. In other word , these provision are not applicable to exempted or non taxable goods.
Disclaimer :
The contents of this article are solely for information and knowledge and does not constitute any professional advice or recommendation. Author does not accept any liability for any loss or damage of any kind arising out of this information set out in the article and any action taken based thereon.
About the Author:
Author is practicing chartered accountant in Gurgaon and having specialization in Service Tax and Haryana VAT. He can be reached at sanjeev.singhal@skaca.in. WWW. skaca.in
Reply By JAYARAMAN RAMAMURTHY as =
Sir,
kindly clarify;
whether ITC is available if physical movement of the tools/ dies is not taking place ie the component supplier who makes his own tools (paid by his customer) in his own premiss and makes components out of the tools to his customer.
ex; A is the OE manufacturer – gets his components from B (his vendor). A

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