TMI BlogREVERSAL OF ITCX X X X Extracts X X X X X X X X Extracts X X X X ..... SIR, IN THE CASE OF RICE SHELLER I AM DOING JOB WORK OF PADDY MILLING AND RECEIVED MILLING CHAGES @10/- PER QTL.AND PAID GST ON MILLING CHARGES.APART FROM MILLING CHARGES I RETAIN HUSK AND RICE BRAN AS PER AGREEMENT FREE OF COST. I AM PURCHASING MACHINERY PARTS FOR JOB WORK.PLEASE REPLY MY FOLLOWING QUESTIONS. 1. WHEATHER I HAVE TO PAY TAX ON JOB WORK CHARGES ON RS.10/-ONLY OR BY ADDING VALUE O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... F GOODS RETAINED BY ME ESPECIALLY WHEN I HAVE ALREADY PAID TAX ON RICE BRAN. 2. CAN I CLAIM FULL ITC ON MACHINERY PARTS WITHOUT REVERSAL. 3 CAN I CLAIM ITC OF CAPITAL GOODS IN THE CASE OF NEW RICE SHELLER 4 TOTAL SUPPLY OF GOODS SAY 3400000/-WHICH INCLUDE RB-TAXABLE 2000000/- +HUSK 1000000+ MILLING CHARGES 200000+ OTHER TAXABLE SERVICES 200000/-.AND PAID TAX ON PURCHASE OF MACHINERY PAR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TS RS.30000/- KINDLY CALCULATE TAX EFFECT - Reply By KASTURI SETHI - The Reply = Query-wise reply is given below:- 1. You will have to add the value of husk and rice bran. There is no free lunch. You can not execute contract in violation of CGST Act. Otherwise you will invite SCN. 2. Yes you can. Reduction of rate to 5% from 18% ( Notification 31/17-C.T.(Rate) dated 13.10.17 does not me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an ITC is not allowed. Notification reducing rate does not impose any restriction to this extent. 3.Yes. 4. Linked with above reply. Only calculation is to be done. This is my interpretation. Also read Circular No. 19/19/2017-GST, dated 20-11-2017 along with relevant notifications mentioned in the circular. - Reply By VENKATARAMANAN NATARAJAN - The Reply = Sir, For Q.1 the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of Husk and rice bran is to be added for the consideration need not only be in money and even non monetary consideration is to be valued in terms of money and subject to tax. For Q2. You are entitled to Input tax credit on the capital goods that is on Machinery. For Q3 There is close proximity between the goods processed and the machinery Rice Sheller. Therefore You are entitled to ITC o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Rice Sheller also For Q 4 It is a matter of calculation of the tax. Any way my reply may be viewed not as a final one but in the light of the observations of the other reply this may or may not be taken. - REVERSAL OF ITC - Query Started By: - PAWANKUMAR GARG Dated:- 21-4-2018 Goods and Services Tax - GST - Got 2 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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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