TMI BlogPartly Job Work ProcessX X X X Extracts X X X X X X X X Extracts X X X X ..... I need to clarify the point for the partly Job work Invoice Issue. We are sending goods (A) to another company for Job work for which the job worker added some consumables (B) from their end and send it back to us (C) I need clarification; 1. Can we raise GST Invoice for (A) product or sending in DC as Job work 2. Job Worker added only the value of B and their Labour work and charging GST is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it correct? (They have not added the value of product A because they are receiving the product A in DC) Please Explain. - Reply By KASTURI SETHI - The Reply = As per Section 143(2) of the GST Act , the responsibility for accountability of inputs or capital goods is on the principal (on you). Tax liability is also on the principal. Job worker works for and on behalf of the Principal. Job wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rker can pay tax if the job-worked goods are to cleared/supplied to third party/buyer on your behalf/on your directions. Proper procedure is delivery challan. You are to account the cost of job worked goods(including the cost of inputs used by the job worker. - Reply By Alkesh Jani - The Reply = Sir, The views expressed by Sh. Kasturiji is perfectly correct, However, in GST the to avail ITC Inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oice is the vital instrument, therefore, If you are taking ITC on the value added by Job worker, the invoice mentioning the details and job work charges are to be shown accordingly. Please correct me if mistaken. - Reply By Ganeshan Kalyani - The Reply = Sending goods on Delivery challan is the correct method. it also benefits to you in the sense that if you raise tax invoice it will be supply a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd tax has to be paid by you. after work is over the job worker will have to again raise tax invoice on you as it would amount to supply for him . in order to avoid all these trouble the procedure of job work has been given in law. you have to send goods on delivery challan and get back the goods under delivery challan without paying any tax. tax would be applicable on the job work charges. the on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly conditon is that the material send under delivery challan for processing need to be received back within 1 year. if not received within the said period tax would be levied from the date when the goods was sent under delivery challan. there is compliance to be done by filing ITC 04 on quarterly basis. - Reply By Basha AbdulRazack - The Reply = Thanks for your reply but issue is the Job work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er added some consumables in this product, so we consulted wiht our Range Officer and he explained that the Job Worker pay GST on the the value = Goods Received(A)+Consumbales(b)+Job Work Charges. Please confirm - Reply By KASTURI SETHI - The Reply = If we talk valuation of job worked goods on cost basis, the element of ''profit margin should also be added. Otherwise GST is on transacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal value as defined under Section 15 of CGST Act. - Reply By Ganeshan Kalyani - The Reply = it seems that there is some gap in understanding . job worker shall not tax on entire amount. he has to levy tax on his job work charges only. - Partly Job Work Process - Query Started By: - Basha AbdulRazack Dated:- 15-3-2018 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Foru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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