GST on JOB work Charges
Query (Issue) Started By: – Narendra Soni Dated:- 8-6-2017 Last Reply Date:- 14-11-2017 Goods and Services Tax – GST
Got 25 Replies
GST
Dear Expert,
\nPlease suggest whether GST is applicable on Job Work Charges raised by Job worker.
\nUrgent reply is appreciated
\nReply By MUKUND THAKKAR:
\nThe Reply:
\nlabour 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.
\nReply By KASTURI SETHI:
\nThe Reply:
\nI support the views of Sh. Mukund Thakkar, Sir. Job work is taxable service under GST.
\nReply By MARIAPPAN GOVINDARAJAN:
\nThe Reply:
\nIn this regard refer Section 143 of the CGST Act which describes the job work procedure.
\nReply By Narendra Soni:
\nThe Reply:
\nThanks Sir,
\nBut, suppose a manufacturer has two units say A & B, located in same city(state) having single(same) PAN no and having single registration in<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n son. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n GST this concept is no longer relevant. Manufacturing is no longer taxable events. Its supply that that is taxable event. In GST you are registered state wise and not factory wise. You need two GSTIN when you say two registered person. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ng) 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n r without paying tax and bring back without paying tax. within a period of 1 year. As we are a pharmaceutical manufacture 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ly: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST on JOB work Charges Query (Issue) Started By: – Narendra Soni Dated:- 8-6-2017 Last Reply Date:- 14-11-2017 Goods and Services Tax – GSTGot 25 RepliesGSTDear 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 … Continue reading “GST on JOB work Charges”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-3596","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/3596","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=3596"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/3596\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nRequested to Mukund Sir, Marriappan Sir, Kasturi Sir, Ganeshan Sir,Rajagopalan Sir…Sir….., please suggest………
\nReply By MUKUND THAKKAR:
\nThe Reply:
\nnarendra Ji,
\nFinal product of both units are same?
\nReply By KASTURI SETHI:
\nThe Reply:
\nSh.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.
\nReply By Narendra Soni:
\nThe Reply:
\nThanks Mukund Sir,
\nBoth 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 i<\/p>\n
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\nReply By Narendra Soni:
\nThe Reply:
\nDear Mukund Sir,
\nShould 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.
\nKindly confirm your expert views.
\nReply By MUKUND THAKKAR:
\nThe Reply:
\nShould 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.
\nNeed not raise the Tax invoice only job work challan is enough for the movements. which will be serially is must. you need <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nReply By KASTURI SETHI:
\nThe Reply:
\nIn 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.
\nReply By Radhakrishna S:
\nThe Reply:
\nSir,
\nI 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<\/p>\n
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\nMr. Radhakrishna,
\nAs 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 th<\/p>\n
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\nIn my opinion, in stead of opting for job work, you can supply RM\/Inputs on payment of GST to Jobworker and subsequently 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.
\nReply By MohanLal tiwari:
\nThe Reply:
\nOne 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.
\nPlease advise if such manufacturing activities can be done under job challan.
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nGST is not applicable on <\/p>\n
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