Goods and Services Tax – Started By: – Narendra Soni – Dated:- 8-6-2017 Last Replied Date:- 14-11-2017 – 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 GST (other unit is declared as additional place of business )
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
,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 is being set off accordingly. Presently no job work charges are raised unit B because both the units ar
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
. 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 to feed the details in GSTN. for movement of job work material. – Reply By manish agarwal – The Reply = Dear expertAs earlie
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ain 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 when he is exempted from paying tax how do a job worker can charge him GST. Every where it is discussed and confirmed that
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e 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 the tax. As far as principal is concerned, Section 143 provides for supply and getting back goods without payment of GST. –
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
equently 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 material part as that is covered within the conditon prescribed. However the job work charges is subject to GST
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =