Interstate Jobwork without payment of tax
Query (Issue) Started By: – Vishnu Dutt Gupta Dated:- 21-3-2017 Last Reply Date:- 4-4-2017 Goods and Services Tax – GST
Got 7 Replies
GST
# GST Applicability on Interstate Job Work ??
( As per CGST Law in chapter XI A – Job work allowed without payment of tax and should be return in prescribed time one year for input)
But in IGST law no procedure mentioned for Job work.
as per Miscellaneous -17 in Chapter IX of IGST law :
Application of certain provisions of the CGST Act, 2016 to I G S T
The provisions relating to registration, valuation, time of supply of goods, time of supply of services, change in rate of tax in respect of supply of goods or services, input tax credit and utiliz
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k without payment of GST.
However, it is advisable not to opt for the provision, instead pay GST on movement of goods,the credit is availed by the job worker who in turn pays the GST at the time of supplying (returning the goods after processing) on which the credit can be availed at your end.
In the end, as the set off is available, the tax impact is neutral.
This will save unnecessary litigation and reconciliation.
Regards
S.Ramaswamy
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
Your assumption is correct.
Reply By Ganeshan Kalyani:
The Reply:
Paying and taking credit would block working capital.
Reply By Vishnu Dutt Gupta:
The Reply:
Thanks to all for valuable reply.
As per Mr. Ramaswamy we can do but we want to know availabi
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