GST on scrap sales credit note by job worker
Query (Issue) Started By: – K.Srinivasan Kuppuswamy Dated:- 27-11-2017 Last Reply Date:- 7-6-2018 Goods and Services Tax – GST
Got 11 Replies
GST
Sir,
\nWe are sending the semi finished goods for machining to job worker. After machining the job worker sends the finished goods to us. The swarf \/ borings generated out of machining is being sold by the job worker on payment of applicable GST.
\nThe job worker issues us the credit note for the material value sold by them on our behalf.
\nIn this context I request your valuable opinion whether the GST applicable on credit note issued by the job worker for the material value.
\nRegards
\nK Srinivasan
\nReply By ANITA BHADRA:
\nThe Reply:
\nSir ,
\nIn terms of Section 143(5) of CGST Act 2017 -'any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, if such job worker is registered, or by the principal, if the job <\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n f supply. Credit note may be on account of sales return, discount, etc. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nder delivery challan.. After machining the job worker sends the finished goods to us and raise service invoice on us with GST for job charges. . The swarf \/ borings generated out of machining is being sold by the job worker on payment of applicable GST to the scrap vendor = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST on scrap sales credit note by job worker Query (Issue) Started By: – K.Srinivasan Kuppuswamy Dated:- 27-11-2017 Last Reply Date:- 7-6-2018 Goods and Services Tax – GSTGot 11 RepliesGSTSir, We are sending the semi finished goods for machining to job worker. After machining the job worker sends the finished goods to us. The swarf … Continue reading “GST on scrap sales credit note by job worker”<\/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-9185","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9185","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=9185"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9185\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nIf job workers issues credit note, same will be against what ??? Against his job charges, not possible in present scenario.
\nJob worker has retained money from scrap sales, if he has been authorised to make scrap sale. No need of credit note as the basic amount excluding GST can be set off against job charges receivables due. The same is treated at par with payment made by principal to jobworker.
\nAlternatively you can raise supply invoice to job worker for supply of waste of payment of gst.
\npractically think of entries from return perspective, impact of debit \/ credit note will be on your sales which may not get reconciled with sales in balance sheet.
\nAs already shared by friends, no GST but take practical view from all aspects.
\nReply By K.Srinivasan Kuppuswamy:
\nThe Reply:
\nSir
\nWe are sending raw castings for machining
\nAfter machining the borings(waste) cleared by job worker directly to the scrap vendor on <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nThe job worker issues us the credit note on us for the material value only without gst since already GST charged by him while removing..
\nThat credit will attract GST or not.
\n I request your valuable opinion whether the GST applicable.
\nRegards
\nK Srinivasan
\nReply By Ramaswamy S:
\nThe Reply:
\nThe job work charges can be negotiated with the job worker for the net quantity and the job worker sells the scrap arising during the course of job work.
\nThe job worker pays the GST on the scrap sold by him.
\nThis will reduce unnecessary paper work and complications.
\nRegards
\nS.Ramaswamy
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nIn my view, the job worker need not issue credit note for scrap sold by him. If even if does then i<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n