Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 30-3-2018 Last Replied Date:- 4-4-2018 – Definition Section 2(68) of Central Goods and Services Tax Act, 2017 ( Act for short) defines the expression job work as any- treatment; or process undertaken by a person on goods belonging to another person and the expression job worker shall be construed accordingly. Whether any activity is covered within the scope of job work or not, would have to be determined on the basis of facts and circumstances of each case. Sending of goods by the Principal Section 143 of the Act provides the procedure for the job work. The principal should be a registered person. A registered person may send any inputs or capital goods to a job worker for job work and from there subsequently and to another job worker and likewise without payment of tax. This is subject to such conditions as may be prescribed. The principal shall- bring back inputs, after completion of job work, within one year of thei
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t of duty the sending of goods is not a supply. Deemed supply If the time frame of one year or three years for bringing back or further supplying the inputs or capital goods is not adhered to, the activity of sending the goods for job work shall be deemed to be a supply by the principal on the day when the said inputs/capital goods were sent out by the principal on the day when the said inputs/capital goods were sent out by him. If the inputs or capital goods are neither returned nor supplied from the job worker s place of business within the specified period, the principal would issue an invoice for the same and declare such supplies in his return for that particular month in which the time period has expired. The interest for the intervening period shall also be payable on the tax. If such goods are returned by the job worker after the stipulated period, the same would be treated as a supply by the job worker to the principal and the job worker would be liable to pay tax if he is lia
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
from that of the principal. The circular clarifies that the job worker is required to obtain registration only if his aggregate turnover, to be computed on all India basis, in a financial year exceeds the specified threshold limit (Rs.20 lakhs or ₹ 10 lakhs in case of special category of States except Jammu & Kashmir) in case both the principal and the job worker are located in the same State. Where the principal and the job worker are located in different States, the job worker is required to be registered compulsorily under the provisions of section 24(i) of the Act which provides compulsory registration of suppliers making any inter-State supply of services. However exemption from registration has been granted in case the aggregate turnover of inter-State supply of taxable services does not exceed ₹ 20 lakhs or ₹ 10 lakhs vide Notification No. 10/2017-Integrated tax, dated 13.10.2017. As such the circular clarifies that the job worker is to obtain registration
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ing that being sent from one job worker to another job worker) shall be sent under the cover of a challan issued by the principal. The said challan shall contain the details as specified in Rule 55. The job worker should send one copy of the challan received by him from the principal while returning the goods of the principal after carrying out the job work. In case the goods after carrying out the job work are sent in piecemeal quantities by a job worker to another job worker or to the principal, the challan issued originally by the principal cannot be endorsed. A fresh challan is required to be issued by the job worker. Endorsement of challan Where goods are sent from one job worker to another job worker, the goods may move under the cover of a challan issued either by the principal or by the job worker or the challan issued by the principal may be endorsed by the job worker sending the goods to another job worker, indicating the quantity and description of goods being sent. This pro
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n respect of goods sent to a job worker or received from a job worker or sent from one job worker to another job worker by 25th day of the month succeeding the quarter or within such period as may be determined by the Commissioner. The circular clarifies that it is the responsibility of the principal to include the details of all challans relating to goods sent by him to one or more job worker or from one job worker to another and its return there from. E-way bill Rule 138 provides that an e-way bill is required to be generated by every registered person who causes movement of goods of consignment value exceeding ₹ 50,000/-. The third proviso to Rule 138 provides that the e-way bill shall be generated by the principal or by the registered job worker irrespective of the value of the consignment, where goods are sent by a principal located in one State/Union territory to a job worker located in any other State/Union territory. The circular clarifies the e-way bill shall be generate
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ker, the circular clarifies that the time, value and place of supply would have to be determined in the hands of the principal irrespective of the location of job worker s place of business. The invoice should have to be issued by the principal. In case of exports directly from the job worker s place of business, the LUT or bond shall be executed by the principal. Input tax credit The circular clarifies that the input tax credit would be available to the principal, irrespective of the fact whether the inputs or capital goods are received by the principal and then sent to the job worker for processing etc., or whether they are directly received at the job worker s place of business without being brought to the premises of the principal. The job worker is also eligible to avail input tax credits used by him in supplying the job work services if he is registered. – Reply By Ashwarya Agarwal – The Reply = Very nicely explained sir. – Reply By YAGAY AND SUN – The Reply = nice work done. – A
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =