JOB WORK UNDER REVISED GST LAW:- Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 23-12-2016 Last Replied Date:- 4-7-2017 – DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN JOB WORK UNDER REVISED GST LAW:- The amendments made in the provisions pertaining to job work and their comparision with respect to earlier GST law and in present scenario is summarised as follows:- Earlier GST law provided that Commissioner may be special order and subject to conditions, permit a registered taxable person to send taxable goods without payment of tax to a job worker for job work. This indicated that every time, permission of Commissioner was required to be taken for sending goods for job work. This anomaly has been removed in the revised GST law wh
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ied for inputs has been increased from 180 days to one year and that for capital goods has been increased from two years to three years. This increase in the time limit for job work is appreciated by trade and industry particularly for the capital goods. However, it is pointed that the definition of capital goods has undergone a substantial change and now goods that are capitalised in the books of accounts are to be treated as capital goods and consequently the enhanced time limit will be available only to those goods which are capitalised in the books of accounts. There is drastic change in the provision regarding non-receipt of job-worked goods within the stipulated time period. As per old GST Law, where the inputs or capital goods were n
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ut/capital goods will be deemed to be supply for principal. It implies that principal has to pay GST after two years for inputs and after three years for capital goods but this duty payment will be considered on the date of supplying goods for job work. However, there is no express provision whether the job-worker will be able to claim credit of tax paid by the principal. Moreover, there might be practical difficulty in availing credit. Although, the invoice is to be raised in the current date and hence the time restriction for availing credit will not apply in such cases. But the department might not adhere to such analogy and there is bound to be litigation on such points. Also, it appears that the principal will be required to pay intere
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