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GST on JOB work Charges, Goods and Services Tax - GST

Issue Id: - 112027
Dated: 8-6-2017
By:- Narendra Soni
GST on JOB work Charges

  • Contents

Dear Expert,

Please suggest whether GST is applicable on Job Work Charges raised by Job worker.

Urgent reply is appreciated

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Posts / Replies

Showing Replies 1 to 15 of 25 Records

1 Dated: 8-6-2017
By:- MUKUND THAKKAR

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.


2 Dated: 8-6-2017
By:- KASTURI SETHI

I support the views of Sh. Mukund Thakkar, Sir. Job work is taxable service under GST.


3 Dated: 8-6-2017
By:- MARIAPPAN GOVINDARAJAN

In this regard refer Section 143 of the CGST Act which describes the job work procedure.


4 Dated: 8-6-2017
By:- Narendra Soni

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 ). Whether job work charges are applicable in inter unit job working and if yes, whether such job work charges are liable to GST.

Please confirm at the earliest.


5 Dated: 9-6-2017
By:- Vipul Singh

If 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 ) then issue of job work charges does not pop up because you are processing on your own goods. Job work in GST means undertaking any treatment or process by a person on goods belonging to another registered taxable person.

Hope its clear smiley


6 Dated: 9-6-2017
By:- Narendra Soni

Sir, Please check again, as per my view,"Another registered person" does not mean that both the persons should have different registration.If our both the units are registered in a single registration, transaction may be treated as between another registered person.

Requested to Mukund Sir, Marriappan Sir, Kasturi Sir, Ganeshan Sir,Rajagopalan Sir...Sir....., please suggest.........


7 Dated: 9-6-2017
By:- MUKUND THAKKAR

narendra Ji,

Final product of both units are same?


8 Dated: 9-6-2017
By:- KASTURI SETHI

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.


9 Dated: 9-6-2017
By:- Narendra Soni

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 are covered under group company.

(This is present practice where both the units are separately registered in central excise).

Kindly suggest.


10 Dated: 9-6-2017
By:- MUKUND THAKKAR

Dear soniji,

please do not panic much more. because there is no consideration is there no question under GST. secondly if your central excise registration is different but I think your Balance sheet will be common. central excise registration is separate because of requirement under central excise law.

But under GST your migration under same PAN number and allotted provisional ID is common. so do not worry job work charges is not applicable in your Transaction, as per fact given by you. just use different series of invoice for your internal identification and control.


11 Dated: 9-6-2017
By:- Vipul Singh

Dear Narendra,

You are concerned with factory wise registration under central excise. Under 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.


12 Dated: 13-6-2017
By:- Narendra Soni

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.


13 Dated: 19-6-2017
By:- MUKUND THAKKAR

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.


14 Dated: 24-6-2017
By:- manish agarwal

Dear expert

As earlier there in no Service tax when the cut components of fabric given by the party and we only stich it and return back to them , what is the current status after the GST applicable .

. In case where Cut Components Of Fabic is supplied and stitched by the tailor (us), whether this activity is manufacturing or service ? In whatever applicable case what would be the rate of the Tax ? under GST


15 Dated: 7-8-2017
By:- Radhakrishna S

Sir,

I observed that experts confirm that Job worker should charge GST on his portion of process/ treatment. As I understood the sec 143 the Principal may send the inputs/ capital goods to job worker 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.


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