Interstate Jobwork without payment of tax, Goods and Services Tax - GST

[Vishnu Dutt Gupta]

# 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 utilization thereof, distribution of input tax credit by an Input Service Distributor, job work, accounts and records, payment, tax deduction at source, return, tax collection at source, audit, assessment, adjudication, demands, refunds, interest, recovery of tax, offences and penalties, inspection, search and seizure, prosecution and power to arrest, appeals, review, advance ruling and compounding shall apply, so far as may be, in relation to the levy of tax under this Act as they apply in relation to levy of tax under the CGST Act, 2016:

On behalf of above we suppose that Interstate Job work allowed without payment of duty as per CGST Law?

Posts / Replies

[Ramaswamy S]

Though section 55 of RMGSTL provides for removal of goods for job work 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

[MARIAPPAN GOVINDARAJAN]

Your assumption is correct.

[Ganeshan Kalyani]

Paying and taking credit would block working capital.

[Vishnu Dutt Gupta]

Thanks to all for valuable reply.

As per Mr. Ramaswamy we can do but we want to know availability of procedure without payment of tax on interstate processing only.

Intra state also clear in CGST Law.

Rgds,

M K

[Ramaswamy S]

Once rules are framed, the procedure to be adopted will be clear.

It is once again suggested that its better and advisable to pay the GST and avail set off rather than complicating, disputes, reconciliation.

GST is meant to ease of doing business. Though compliance is high and huge.

Regards

S.Ramaswamy

[YAGAY AND SUN]

Jobwork would be payment of GST but subject to certain conditions as may be prescribed by jurisdictional authorities.

[Manisha Modi]

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