Whether filling chemical into drums treated as a job work?
Query (Issue) Started By: – Yatin Bhopi Dated:- 13-2-2019 Last Reply Date:- 15-2-2019 Goods and Services Tax – GST
Got 10 Replies
GST
Dear expert,
\nWe are manufactures of chemicals. We sale our products in drums as well as in tanker. Now our drum filling machine is out of service. To complete the customer commitments, we wish to do this durm filling activity with job worker who is registered under GST.
\nmy query is, whether sending finished goods to the job worker for filling drums construed as a job work activity? can we follow job work procedure?
\nReply By CASeetharaman KC:
\nThe Reply:
\n“job work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly. This is the definition of Job Work given in clause (68) of section 2 of the CGST Act, 2017. The above activity would fall under job work as filling drums co<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n details. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nputs after completion of the job work provided again that the Principal declares the place of business of the job worker as his additional place of business except in a case- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Whether filling chemical into drums treated as a job work? Query (Issue) Started By: – Yatin Bhopi Dated:- 13-2-2019 Last Reply Date:- 15-2-2019 Goods and Services Tax – GSTGot 10 RepliesGSTDear expert, We are manufactures of chemicals. We sale our products in drums as well as in tanker. Now our drum filling machine is out … Continue reading “Whether filling chemical into drums treated as a job work?”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-16708","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16708"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16708\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nReply By Alkesh Jani:
\nThe Reply:
\nHon'ble Experts,
\nPlease give your valuable views that can HSN Code "998540", Packaging services of goods for others, be applicable in the instant case?
\nThis query is to enrich my knowledge, through your guidance.
\nThanks,
\nWith due regards
\nReply By DR.MARIAPPAN GOVINDARAJAN:
\nThe Reply:
\nI endorse the views of the experts.
\nReply By KASTURI SETHI:
\nThe Reply:
\nSh.Alkesh Jani Ji,
\nPl. refer to a query dated 13.2.19 (Serial No.3 above). It is pertinent to know what is packaging service and what is packing service and what is the difference between both activities. There is a lot of difference between the two. It is amply clear from legal definition of 'packing' and 'Packaging'. If we see the definition of packaging service provided in the erstwhile Section 65(76b) of the Act read with Board's Instruction under F.No.B1\/6\/2005-TRU dated 27.7.2005 and the present definition of packaging service under GST, the act<\/p>\n
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\n(i) where the job worker is registered under section 25; or
\n(ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner.
\nHence even though the material supplied by you is a finished product the same is an input for the job worker as without filling the drums the finished product does not come into existence. As such there is a clear provision where the goods can even be supplied from the premises of the job worker. Point to be noted here is that the Principal would be ultimately responsible to maintain proper accounts and ensure that proper duty has been paid on the final product
\nReply By KASTURI SETHI:
\nThe Reply:
\nGoods cannot be called finished goods until and unless these are packed\/packaged properly so that these become marketable. Goods are neither safe nor mark<\/p>\n
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